Dear Experts,
I am facing the issue that, due to COVID-19 and as per the government's announcement, we declared leave without mentioning any paid leave in the circular. On the 2nd day of the announcement, the State Government declared that the company has to pay full salary for those days for their employees. However, the management is not ready to pay the salary due to the industry slowdown in the last 6 to 8 months and lack of proper productivity. If we pay without salary for those days, are there any legal issues that will arise from the government and employees' side?
Please advise me. I am looking for the best solution.
Regards,
Baskar Sriraman
From India, Mumbai
Acknowledge(0)
Amend(0)
I am facing the issue that, due to COVID-19 and as per the government's announcement, we declared leave without mentioning any paid leave in the circular. On the 2nd day of the announcement, the State Government declared that the company has to pay full salary for those days for their employees. However, the management is not ready to pay the salary due to the industry slowdown in the last 6 to 8 months and lack of proper productivity. If we pay without salary for those days, are there any legal issues that will arise from the government and employees' side?
Please advise me. I am looking for the best solution.
Regards,
Baskar Sriraman
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Baskar Sriraman,
The COVID-19 outbreak is an international disaster affecting millions of people across the globe day by day. The high density of population in countries like ours poses a great challenge to whatever the preventive and curative measures earnestly taken by our Central and State Governments. The nation-wide curfew and shutdown imposed by the Government in the wake of a situation of medical emergency, if continued indefinitely beyond April 14, 2020, may lead to the imposition of Financial Emergency under Article 360 of the Constitution of India for the reason that recovery of the economy after restoration of normalcy in a day or two is certainly not at all possible. Therefore, a concerted action based on the different dimensions of the present problem including its human side is called for from all the stakeholders of the industry.
The Government's direction to pay wages to the industrial employees for the lockdown period despite no work has to be viewed as only a temporary measure to avert immediate loss of earnings to millions of working masses. Do not simply undermine or lose sight of the announcement of the RBI regarding certain financial sops, Government's move to bear the burden of the EPF contributions of both the employer and employee in respect of industrial establishments with less than 100 employees, the EPFO's announcement permitting non-refundable advance of 75% of accumulation to employees, etc. Other remedial measures enabling the industry to cope with this unexpected and inevitable economic crisis consequent on the killer epidemic might be on the anvil. My humble submission, therefore, would be that instead of mulling over the legal consequences of non-compliance, the employers' positive efforts towards immediate compliance are the need of the hour. If there is a will, there is a way!
From India, Salem
Acknowledge(0)Amend(0)
6185The COVID-19 outbreak is an international disaster affecting millions of people across the globe day by day. The high density of population in countries like ours poses a great challenge to whatever the preventive and curative measures earnestly taken by our Central and State Governments. The nation-wide curfew and shutdown imposed by the Government in the wake of a situation of medical emergency, if continued indefinitely beyond April 14, 2020, may lead to the imposition of Financial Emergency under Article 360 of the Constitution of India for the reason that recovery of the economy after restoration of normalcy in a day or two is certainly not at all possible. Therefore, a concerted action based on the different dimensions of the present problem including its human side is called for from all the stakeholders of the industry.
The Government's direction to pay wages to the industrial employees for the lockdown period despite no work has to be viewed as only a temporary measure to avert immediate loss of earnings to millions of working masses. Do not simply undermine or lose sight of the announcement of the RBI regarding certain financial sops, Government's move to bear the burden of the EPF contributions of both the employer and employee in respect of industrial establishments with less than 100 employees, the EPFO's announcement permitting non-refundable advance of 75% of accumulation to employees, etc. Other remedial measures enabling the industry to cope with this unexpected and inevitable economic crisis consequent on the killer epidemic might be on the anvil. My humble submission, therefore, would be that instead of mulling over the legal consequences of non-compliance, the employers' positive efforts towards immediate compliance are the need of the hour. If there is a will, there is a way!
From India, Salem
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Register and Log In.
No Due Certificate.doc
Govt of Corporate Affairs - Due Date Extension.jpeg