Companies asking employees to give up leave for lockdown period

Shishir Arya & Mazhar Ali | TNN | Updated: Apr 24, 2020, 10:36 IST

NAGPUR/CHANDRAPUR: Amid calls by Prime Minister Narendra Modi that workers’ salaries for the lockdown period will be protected, companies have come up with ingenious ways to cut their liability indirectly.
Some of the companies were seen asking the employees to apply for leave during absence due to lockdown. In case the employees did not have enough leave balance, it could also lead to pay cut.
TOI has a copy of one such electronic communication by the management of a leading manufacturing company that has a unit in Chandrapur.
The letter says all employees working from home from April 1 to 7 shall be paid in full. Those not present at the base location will be deemed to be on leave, except for the cases where employees have left with a proper permission.
The letter further says that the period from April 8 to 14 will be entirely considered as leave, except the weekly off.
However, here there is no pay cut for those workers who do not have leave balance. The communication says “those not having any leave to their credit will be given additional leave to be adjusted later. The rule applies to all management staff till the MD & CEO.”
Union leader Naresh Pugalia has raised the case with the Chandrapur district collector, alleging it to be violation of the directives by ministry of home affairs (MHA) for the lockdown. An official who refused to be named said this does not amount to violation of any MHA guidelines.
He also said that the communication referred by TOI has only been addressed to employees of management cadre, but excludes industrial workers.
The collector Dr Kunal Khemmar who confirmed that a complaint was received said he has directed the assistant labour commissioner to conduct an inquiry into the matter.
Staffers of an IT company in Mihan-SEZ said that they have been asked by their human resources department to apply leave for the lockdown period. Those not assigned work from home have to apply for leave, said a staffer.
In this organization salaries will be cut for those not having enough leave balance, said the employee requesting anonymity.
An employee of a US-based IT company showed a letter which says that senior management employees have either forgone their salaries or taken a 50% cut. The source said the deduction has been practically applicable to all in this group.