How Should Construction Companies Handle Salary Deductions During COVID-19 Without Legal Risks?

Dear Experts,

I would like to ask you about the best practices for handling salary deductions for employees in construction-based companies during the COVID-19 situation, especially when the organization is not generating revenue. What are the impacts if the organization does not pay the employees' salaries as required by law?

Kindly suggest to us the best practices in this situation.

Thank you.

Central Government Directive on Salary Deductions

As per the Central Government directive/advisory, employers shall not deduct any amount from the pay packet of their employees. Many discussions have emerged on this platform.

Few employers who have filed petitions in the Supreme Court challenging the Central Government's directive in this regard have not received any stay in this matter from the Supreme Court (rather, the Supreme Court has refused to stay on this).

Hence, the decision of whether the full salary is to be paid or not shall purely rest upon the employer; and the freedom of facing any legal ramifications, if they arise in the future, shall also rest with the employer concerned.

Thanks