Despite Govt. Advisory, Private Companies Aren’t Paying Their Employees

An advisory by the Ministry of Labour and Employment had appealed to all private companies not to cut wages of employees amid coronavirus crisis.

Mumbai| The entire private sector of commodities and services has been shut with the exception of essential products. The employees of these companies have been either asked to work from home or to take a leave if the work cannot be performed from home.

In light of the recent events and the lockdown announced by PM Modi, it’s evident that the people who aren’t working due to the social distancing will need monetary support to feed their families. To ensure the same, an advisory by the Ministry of Labour and Employment had appealed to all private companies not to cut wages of employees amid coronavirus crisis. The advisory is dated on 20th March.

The advisory refers to the current crisis in the country and says, “In the backdrop of such a challenging situation, all the Employer’s of Public/Private Establishments are advised to extend their coordination by not terminating their employees, particularly casual or contractual workers from the job or reduce their wages. If any worker takes leave, he shall be deemed on duty without any consequential deduction in wages for this period. Further, if the place of employment is to be made non-operational due to Covid-19, the employees of such unit will be deemed on duty.”

Despite the advisory, private companies are denying the salaries of their employees for the period of lockdown.

One such manufacturing company from Palghar, an adjacent district to Mumbai, wrote an email to their employees. The email clearly mentions that employees will have an unpaid leave from 21st March.

Citing the reason for pay-cut, the company email states, “As it’s a huge loss for the company too and all the projects got stuck due to section 144 imposed by the government, all off days from 21st March till the next order by the government will be deemed as leave without pay.”

Further addressing the employees, the email says that there are no reimbursements yet by the government for the losses incurred. It also says that if the government announces any package to “recover the losses”, the company will transfer the same benefits to employees.

HW News accessed the email, the screenshot of the same is attached below.

Many private company employees have expressed their worries over handling the expenses of their families, paying EMIs amid the lockdown if they don’t get paid. Such employees are now looking up to the government to help them in this crisis by declaring an economic package.

Finance Minister Nirmala Sitharaman mentioned in her recent Press Address that there is an economic package in the making and it will be announced shortly. If the government assures private companies that their losses will be looked after in this crisis, the companies can pay their employees their monthly salaries or wages.

PM Modi in his address on Tuesday had also asked the private companies not to cut the salaries of their employees. Although, he didn’t announce any robust package or plan of action in that regard.


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