Whom should the employer approach in case he is not able to pay wages on time due to the pandemic?
From India, Lucknow
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From India, Lucknow
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Dear Mohan,
Strictly speaking, no labor law permits a delay in the payment of salaries and wages. Therefore, no government authority will be able to help you with your inability.
Nevertheless, you may take the employees into confidence and explain your problem. If they cooperate, then only will you be able to run the enterprise; otherwise, it will lead to a forced shutdown, resulting in a lose-lose situation for all.
Whether the employees agree or not, your liability for the clearance of the dues remains intact.
Thanks,
Dinesh Divekar
From India, Bangalore
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8035Strictly speaking, no labor law permits a delay in the payment of salaries and wages. Therefore, no government authority will be able to help you with your inability.
Nevertheless, you may take the employees into confidence and explain your problem. If they cooperate, then only will you be able to run the enterprise; otherwise, it will lead to a forced shutdown, resulting in a lose-lose situation for all.
Whether the employees agree or not, your liability for the clearance of the dues remains intact.
Thanks,
Dinesh Divekar
From India, Bangalore
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I would like to suggest that you pay a part of the salary, whatever you are able to afford on the due date, and make a commitment to pay the rest. As advised by the learned Dinesh Sir, there is no escape from the legal liability, and none of the officials can help you in this regard. Many organizations have paid partial salaries during this period, so you are no exception. Take employees into confidence, share your revival plans, and forge ahead.
From India, Mumbai
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From India, Mumbai
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Dear Colleague,
There is no legal way out, as our learned members replied. No law permits delayed payment. No government official will give any such permission, as such provisions are absent in the Indian Labour Laws. Situations like the pandemic are all new to us, and we learn a lot from this experience. Even well-intentioned employers are unable to pay salaries on time due to the economic situation. There should be a thoughtful process in the minds of law makers, employers, trade unions, and the ministry in developing mechanisms to genuinely assess and understand the circumstances and consider permitting employers to extend the pay day if there is merit to the situation. Without an examining mechanism, there may be exploitations by employers, and this excuse may become commonplace. Therefore, there should be a tripartite body to examine such situations and then issue orders for a specific period under the Wages Law. However, this thought process should commence now and be represented in all forums so that progress can begin.
Under the current situation and legal status, there is no provision as mentioned earlier. The only solution is paying advances, as some employers do, partly on the pay day and then within a week or a reasonable time frame in the same month to pay the balance. This approach will somewhat help, but it requires complete transparency by sharing the financial situation of the company with the employees. Inform the local government inspector orally, who has jurisdiction over your area. If there is a trade union, involve them and communicate through them to the employees. If there is no union, directly communicate with all the employees with clarity and sincerity. Currently, no salary is better than delayed salary, a reality observed in many small and medium industries. Handle this situation genuinely, without any hint of exploitation. Ensure that no disputes or representations are made to the government by the union, employees, inspector, etc. This is the only practical way forward. Wishing you a swift recovery for your industry.
God bless.
From India, Chennai
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There is no legal way out, as our learned members replied. No law permits delayed payment. No government official will give any such permission, as such provisions are absent in the Indian Labour Laws. Situations like the pandemic are all new to us, and we learn a lot from this experience. Even well-intentioned employers are unable to pay salaries on time due to the economic situation. There should be a thoughtful process in the minds of law makers, employers, trade unions, and the ministry in developing mechanisms to genuinely assess and understand the circumstances and consider permitting employers to extend the pay day if there is merit to the situation. Without an examining mechanism, there may be exploitations by employers, and this excuse may become commonplace. Therefore, there should be a tripartite body to examine such situations and then issue orders for a specific period under the Wages Law. However, this thought process should commence now and be represented in all forums so that progress can begin.
Under the current situation and legal status, there is no provision as mentioned earlier. The only solution is paying advances, as some employers do, partly on the pay day and then within a week or a reasonable time frame in the same month to pay the balance. This approach will somewhat help, but it requires complete transparency by sharing the financial situation of the company with the employees. Inform the local government inspector orally, who has jurisdiction over your area. If there is a trade union, involve them and communicate through them to the employees. If there is no union, directly communicate with all the employees with clarity and sincerity. Currently, no salary is better than delayed salary, a reality observed in many small and medium industries. Handle this situation genuinely, without any hint of exploitation. Ensure that no disputes or representations are made to the government by the union, employees, inspector, etc. This is the only practical way forward. Wishing you a swift recovery for your industry.
God bless.
From India, Chennai
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