Facing Unpaid Stand Down Due to COVID-19: How Should I Respond to My Employer's Notice?

Dear Seniors, I am working for a private limited company based in Delhi. It has been approximately one and a half years since I started working with this company, and I recently received an increment. However, during the lockdown, the company has only paid 30% of its employees, which is only one-third of the total workforce. When I approached the manager to request a fair amount, they responded by sending me the email below, mentioning termination with immediate effect. Please see the content of the email and advise me on how to handle this situation.

The letter reads as follows:

"As you are aware, the ongoing COVID-19 pandemic has had a significant impact on all businesses in our region. Due to this situation, we regret to inform you that your employment as HR Manager will be temporarily stood down as your work cannot be safely carried out while the coronavirus is spreading.

This stand down is effective immediately (May 29, 2020), and we anticipate that it will last until the situation improves. As per the Fair Work Act, your stand down will be unpaid.

I want to emphasize that this stand down is temporary and, while unfortunate, we look forward to your return when we are able to resume business. During this period, if you find a better opportunity elsewhere, you may pursue that option.

Please acknowledge this letter as soon as possible and submit any company-provided items from your full-time employment."

I appreciate your support and assistance.

Sincerely, [Your Name]

Employment and Stand Down Policy During Lockdown

The template used by the company is published on an Australian HR website for use in their country. Therefore, it must be utilized by the company due to a lack of knowledge.

According to labor law, there is no concept of keeping employment on stand down, which implies unpaid leave. Therefore, my employment will continue as usual, and I shall be entitled to all employee benefits. During this lockdown period, employers are obligated to pay salaries to their employees without any deductions, as per the order issued by the Ministry of Home Affairs dated March 29, 2020.

Lastly, the company is requesting me to return office belongings, indicating that my services have been terminated, as this information was verbally communicated to my team members. This action goes against the advisory issued by the Ministry of Labour and Employment.

Please correct me if I am mistaken in any way. Thank you.

Cessation Letter and Request for Severance

I received a similar cessation letter as follows:

COVID-19 is impacting everyone around the world and every aspect of our daily lives: our social interactions, our family life, our communities, and, of course, how all of us work at Home Credit. Multiple aspects of our business have changed dramatically over the last couple of months, and many of these changes are expected to be permanent. While we will continue to build a more focused Home Credit, we do not foresee having enough productive work for all our employees. We owe all our colleagues a challenging work environment, but we won’t be able to offer that to you going forward.

While new business models & formats, digital leadership, and innovative data tools help, the decision of how to operate and when to make changes is a human one. With limited business opportunities, we are compelled to adjust our market strategy and organization structure to sustain and survive in this difficult competitive market.

In view of the above, we regret to inform you that your services will no longer be required by the Company with effect from the closing hours of 28-May-2020.

In lieu of such cessation, you will receive Notice Pay as per the Notice Period Policy in accordance with the Terms & Conditions of Employment with Home Credit India Finance Private Limited.

The management wishes to place on record its appreciation for all your contributions in the past and wishes you all the best for the future.

After receiving this letter, I asked for severance pay and a prorated bonus, but they have not responded. Every time I write an email, they block my email ID on their server. Please advise on the next course of action.