No Result
View All Result
  • Login
Tuesday, June 28, 2022
Afternoon Voice
SUBSCRIBE
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics
No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics
No Result
View All Result
Afternoon Voice
No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Epaper
  • More

Home > Editorial > Salary Crises Still Continues As Companies Lack Business

Salary Crises Still Continues As Companies Lack Business

by Vaidehi Taman
December 17, 2020
in Editorial
A A
0

job losses, covid-19, coronavirus, salary cut, salary hike, salaries, covid, lockdown

Most employers in Mumbai have given a full salary for March. But Salary from April became a big issue. The maximum private sector are mandatorily cutting a huge percentage of salaries of their staff; some are unable to pay salaries for months. The market has not flourished; the lockdown hit was very heavy. Some employers will not be able to pay and will not pay for the period many months ahead unless everything comes to a normal state. Many companies make their staff work on 50 per cent cut. As companies try to ensure their survival by cutting costs, many have resorted to slashing salaries and lying off staff. Others have put employees on indefinite leave without pay or put freshly hired staff on hold. The impact of Covid-19, as many people are facing a salary cut.

Prime Minister Modi urged companies to be kind to employees. Yet, many corporate have already announced salary cuts, some have asked employees to leave, and others have asked their employees to go on furlough, the term for leave without pay. Aviation, media, hospitality, banking, and financial services have been among the worst-hit sectors. Many companies got closed and the owners are hand to mouth. One of my friends was working for a PR agency, now selling vegetables in his village. One of the best page designers in Jewellery Company selling chapattis and Tiffin’s in her locality, many It sector guys who bought cars on EMI have enrolled themselves for rides like Ola and Uber. Labour laws in India protect the rights of the workmen, who are blue-collar workers operating plants and machinery. But the latest directives by the government do not make any distinction between workmen and white-collar employees, and those hired on contract by companies. HR consultants say companies can stay within the rule by asking employees to go on furloughs, capping salaries, withholding performance-linked to pay, or re-configuring job roles such that employees think they are better off quitting. Also, while the lay-off, companies ask employees to hand in their resignation letters.

Most employees agree, rather than taking their employer to court as it could hurt future job prospects. This ensures that companies cannot be accused of firing people. I don’t think there is a blanket prohibition on changes to any and all terms of employment. As far as terminations and lay-offs go, where a state has passed an order restricting any termination, under duly delegated authority under the National Disaster Management Act, then there could be prosecuted for violating the same. But not all states appear to have done that. At a time when companies are incurring losses because of zero revenues during the lockdown, many employers may genuinely not be in a position to pay full wages on time. So employees would agree to take a lower salary than be out of a job. All industries are suffering in the current post-pandemic situation and the pain is now translating into layoff in every industry at every level.

Companies are even cutting the salaries of those employees whom they are planning to retain. The organised private sector in India is planning to have major job cuts/layoffs and lockdown that have significantly impacted the economic activities. There was an online survey by a private agency, 68 per cent of the employers have either started the layoff process or are planning to even today because they themselves are in crises.

Delayed salary, salary cut up to 70% or more, leave without pay, or at the worst loss of job situations. So be prepared for any of these outcomes even for next year. These are the most difficult times not only for you as an employee but also for your employer.

In most cases business continuity itself is at risk or new ways of doing business will have to be evolved. Most businesses might change into online businesses and many employees might have to start their own small businesses. This also needs to be seen that Corona will be eradicated or the world will have to live with it. Some super-rich established companies somehow cope up with salaries, and they are not harsh on cuts but there are huge layoffs in those companies. This time many companies are facing a lot of problems due to lack of finance due to the closure of their work. And due to which he will not be able to give more than 50 percent of salary to his employee. And there are some companies whose company has good turnover and profit; it can also give a salary to the employee at home for 2 to 3 months. After that, they won’t be able to give. And the small skill industries company also cannot give more than 2 months after that. That is why in such a time we will have to live as much as we have got until the work is not started, he also cannot do anything. Among the surveyed organizations, 73 per cent said they have plans to decrease the salary of employees, 57 per cent said this layoff is temporary, while 21 per cent said they are doing permanent layoffs for at least 2 years. Interestingly, 32 percent of employers did not have any job cut/layoff plans. Employers have the right to cut salaries in a lockdown or any other situation. Employers always have a right to increase compensation as well as reduce it at all times when you are in employment.

One should not look at this emotionally or the fact that the government has issued a recommendatory letter to employers to keep paying salaries. Such letters are merely a request and cannot be legally enforced. Businesses need to generate resources to be able to pay their employees. They do not have unlimited funds. Even the government has started going around with a begging bowl, so what do you expect businesses to do?


 

Tags: Job LossesLockdownNarendra Modisalary

Vaidehi Taman

Vaidehi an Accredited Journalist from Maharashtra is bestowed with three Honourary Doctorate in Journalism. Vaidehi has been an active journalist for past 16 years, and is also the founding editor of an English daily tabloid – Afternoon Voice, a Marathi web portal – Mumbai Manoos, monthly magazine Beyond The News, and The Democracy digital video news portal is her brain child. She is an EC Council Certified Ethical Hacker, OSCP offensive securities, Certified Security Analyst and Licensed Penetration Tester that caters to her freelance jobs. Besides journalism, she is also an Ethical Hacker, Philanthropist, and Author.

Recommended For You

Editorial

Eknath Shinde’s revolt has sparked a debate across India

June 24, 2022
uddhav, thackeray, uddhav thackeray, shiv sena, sena, varsha, eknath shinde, balasaheb, bal thackeray, balasaheb thackeray, aaditya, thackeray, maharashtra politics
Editorial

The 56th anniversary of Shiv Sena became a disastrous year for the party

June 23, 2022
nitin deshmukh, shiv sena, sena, uddhav, eknath shinde, shinde, mla, mlas, shiv sena mla, deshmukh, sena, maharashtra politics, maha, politics
Editorial

Shiv Sena MLA escapes from rebel camp with the horror of life

June 22, 2022
assam, flood, rain, assam floods, maharashtra, mumbai, rains
Editorial

India suffers floods and draughts every year

June 20, 2022
sri lanka, emergency, sri lankan government, sri lankan, facebook, twitter, whatsapp, emergency in sri lanka
Editorial

Technology can be sometimes in public jeopardy?

June 19, 2022
agnipath, agneepath, agnipath scheme, army scheme, army recruitment, army services, protest in india, protest over agnipath, agneepath scheme, indian army
Editorial

Army aspirants agitate over the Centre’s ‘Agnipath’ scheme

June 16, 2022
ADVERTISEMENT

LATEST

Kurla Building Collapse, Kurla

3 dead, Maharashtra announces Rs 5 lakh for families of deceased in Kurla Building collapse

June 28, 2022
Rebel MLAs, Eknath Shinde, Assam, Guwahati

Rebel MLAs of Shinde camp to hold meet today, expected to take important decision

June 28, 2022
Mamta Banerjee, CM of West Bengal,

Mamta Banerjee say’s “Centre using its agencies against those speaking the truth”

June 27, 2022
balasaheb, thackeray, uddhav, uddhav thackeray, shiv sena, sena, eknath shinde, shinde, maharashtra

Shiv Sena vs Shiv Sena

June 27, 2022
Teesta Setalvad and RB Sreekumar

Teesta Setalvad and Sreekumar are remanded to the criminal branch until July 2

June 27, 2022
ADVERTISEMENT
Afternoon Voice

© 2022 Newsmakers Publications Pvt. Ltd. | All rights reserved.

Important Links

  • Disclaimer
  • Privacy Policy
  • About Us
  • Contact Us
  • Support Parallel Media

Follow Us

No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics

© 2022 Newsmakers Publications Pvt. Ltd. | All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?