Dear Friends,My company(IT) wants to do a Pay Cut for Employees during coming appraisal. This is only because there is order from our HQ (as its an MNC) that we need to cut the cost of Operations in India else will be shut down. As Indian Management doesnt want to shut down the company as well as not willing to layoff any employee - they are seeking suggestion on how to do the Pay Cut for employees ?Options are like 5% flat salary cut to all levles, which is very simple but also thinking on making the employees to take compulsory leave without Pay.My Question is - When there are other leaves ( CL and PL ) available to employee - Is it leagle to do LOP ? Is there any Law which says when to take Leave on LOP ? Or Is it just Industrial standard of making LOP when there is no other leaves available. Experts Please clarify.I saw some other posts in the same citehr advicing - to take compulsory leave with LOP ? Is it possible for any company to make such rule to handle crisis ?Regards,Jyothi</p>