Govt.of India advise companies not to layoff, cut salary due to Corona Virus situation
23rd, March 2020 - News
The government of India has issued an advisory to both private and public companies to not lay off employees or cut their salaries, in the wake of the COVID-19 or novel coronavirus crisis.
“The advisory from the Ministry of Labour and Employment, dated March 20 reads: “In the backdrop of such challenging situation, all the employers 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. [sic]”
The government’s advisory goes on to add, “If any worker takes leave he (/she) should be deemed to be on duty without any consequential deduction in wages for this period.”
Till now GoI has not come out with any fiscal policy to battle the emergency situation and many people are asking What GoI is doing? Also the Indian Economy is under pressure and the stock market is completely down and the rupee value is increasing.
The novel coronavirus has so far killed eight people in India and infected 425. Across the world, the virus has taken more than 15,000 lives and infected over 3, 51,000, according to real-time population data tracker World meter.
Many people across India have been put under lockdown, in a bid to contain the spread of the novel coronavirus. A total of 80 districts across the country, including major cities such as New Delhi, Mumbai, Karnataka, Chennai, Hyderabad, and Kolkata have been placed under strict lockdown restricting movement, travel, and work till April 1st.
The government’s advisory to employers also highlights the fact that job cuts and wage cuts would “further deepen the crises and will not only weaken the financial condition of the employee but will also hamper their morale to combat” the pandemic.
India's unemployment rate rose to 7.78 percent in February, the highest since October 2019, according to data from the Centre for Monitoring Indian Economy (CMIE).,sensing the future crises,
Since the lockdown is in place, companies are not able to go for full production and are incurring huge losses. Hence India Inc. through industry associations such as CII (Confederation of Indian Industry) and Assocham (The Associated Chambers of Commerce and Industry of India) has written to Prime Minister Modi and Finance Minister Nirmala Sitharaman, seeking measures such as a year-long moratorium by banks on debt repayment, tax cuts, and fiscal stimulus amounting to Rs 2 lakh crore to needy citizens through Aadhaar-based direct benefit transfer.
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