Whom should employer approach in case he is not able to pay wages on time due to pandamic
From India, Lucknow
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Dinesh Divekar
Business Mentor, Consultant And Trainer
Drsivaglobalhr
Doctor Siva Global Hr
KK!HR
Management Consultancy

Dear Mohan,

Strictly speaking, no labour law permits delay in the payment of the salaries and wages. Therefore, no government authority will be able to help you on your inability.

Nevertheless, you may take the employees into confidence and explain your problem. If they co-operate, then only you will be able to run the enterprise otherwise, it will be a forced shutdown and it will be a lose-lose situation for all.

Whether the employees agree or not, your liability of the clearance of the dues remains in tact.

Thanks,

Dinesh Divekar

From India, Bangalore
KK!HR
1289

I would like to suggest you to pay part salary, whatever you are able to afford on the due date and make a commitment to pay the rest. As advised by the Learned Dinesh Sir, there is no escape from the legal liability and none of the officials can help you in this regard. Many organisations have paid partial salary in this period and so you are no exception. Take employees into confidence, share your revival plans and forge ahead.
From India, Mumbai
Dear Colleague,
There is no legal way out as our learned members replied. No Law permits delayed payment. No Government Official will give any such permission as such provisions are absent in the Indian Labour Laws. The situation like Pandemic are all new to us and we learn a lot from this situation. Really good intended employers are also not able to pay salary on time due to economic situation. There should be thought process in the minds of Law Makers- Employers- Trade Unions- Ministry in arriving mechanisms to really test and examine the facts behind the situation and permit the employer to extend the pay day if it is really bearing any merit. If no examining mechanism, then there may be exploitations everywhere by employers and obviously all will start this excuse. Hence there should be a Tripartite Body to examine such facts and then issue orders for a specific period under the Wages Law. But it such thought process should start now and start representing this in all forums so that some time this will begin.

Under the present situation and legal status, there is no such provision as mentioned earlier. The only way out is Paying Advance as done by some employers partly on the pay day and then within a week or so or within reasonable time in the same month to pay balance will some what help for which the employees are to be taken in to confidence by complete sharing of the financial situation of the company and so on. Appraise to the local Inspector of Government orally who is having jurisdiction over your area. If there is a Trade Union take them into confidence and through them communicate to the employees. If no Union, then directly communicate to all your employees with lot of clarity and intentions. No salary is better than delayed salary is the present situation in many small and medium industries which is a fact we see all around. Handle this genuinely without an iota of exploitation. Ensure that no dispute or representations are made to Government by Union / Employees / Inspector etc. This is the only practical way out. God bless to recover from this situation for your industry.

From India, Chennai

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