Salary reduction Due to covid 19 pandemic - format for undertaking from employee to safe-side employer in legal way

Dear All,

Due to the COVID-19 pandemic, we are unable to pay full salaries to all employees. Therefore, we have decided to reduce salaries for a period of 3 months. We appreciate everyone's understanding and acceptance of this situation.

Please provide suggestions and a format for an undertaking from employees to protect the employer in a legal manner.

Thank you.

I believe the reduction has been effected commonly for all, at the same rates, and there is no discrimination resulting from it. I think there are no stipulated provisions per se in the appropriate laws as yet to effect such a reduction. I also don't see any amendments in the pipeline at the government departments. However, when it's mutually agreed, and that too, this covers a period of 'no work, no pay,' I wouldn't expect any problems creeping up in due course. Nothing to worry about. Maybe at your company level, you can convene a joint meeting and make a resolution to this effect, which will be signed by all, both from the office side and the staff side as well, which should suffice.

Dear Vipin Yadav,

The directives/advisories by MHA: UOI are mandatory to follow. According to various directives/advisories by MHA: UOI, you are not entitled to reduce the salary of any employee until 18.05.2020. However, you can reduce the salary of your employees from 18.05.2020 onwards, but you need to consider the existing laws in force, the terms of the contract of employment, categories of employees, etc. There cannot be a structured format. You should have some knowledge of what to do and how to handle these matters as an HR or higher expert.

Just because someone else has adopted or accepted the situation of reducing salaries does not mean you should adopt or accept it. Please bear in mind that an arbitrary reduction in salaries/wages of employees is not in accordance with the law. Under the ID Act, you need to give notice under section 9A.