Is This COVID-19 Suspension Legal? Company Seizes Credentials and Stops Salary Payments

One of my acquaintances has received the following letter from her organization (located in Gurugram), which continues to operate business as usual. The company has confiscated all login credentials, suspended her official email ID, excluded her from all communication, and ceased salary payments thereafter. Please advise on what course of action can be taken.

Suspension Notice

Dear _______,

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 an HR Manager will be temporarily suspended, as your work cannot be safely carried out while the coronavirus is spreading.

This suspension is effective immediately (May 29, 2020), and we anticipate it will remain in place until the situation improves. According to the Fair Work Act, your suspension will be unpaid.

I want to emphasize that this suspension is temporary and, while regrettable, we eagerly anticipate your return once we can resume normal business operations. During this period, if you come across a better opportunity elsewhere, feel free to pursue it.

Please acknowledge this letter promptly and return any company property provided during your full-time employment.

Sincerely,

This letter, as it stands, purports to be an intimation to an employee on the muster roll that the stated arrangement is purely temporary. The employee is still in employment, with salary payments discontinued, and the employment is merely kept under abeyance, not terminated. However, the clause stating that she is free to seek and secure employment elsewhere is in bad taste, condemnable, and illegal. An employee seeking and securing employment while on the muster roll of her existing employer, doing so with specific knowledge and permission of the current employer, would commit misconduct for which she would be liable to disciplinary action or punishment.

Kritarth Team, 20.7.2020