Labour dept warns against sacking, pay cuts

With employees in several industries grappling with job insecurity during the Covid-19 pandemic, the Labour department has has warned the private sector against sacking staffers or cutting their salary.

In a circular issued by Labour Secretary P Manivanna, the department has directed all public and private companies not to fire employees, especially those working on contract.

"Given the emergency situation caused by Covid-19, employers are directed not to dismiss their employees, especially on casual employment or on contract and their salaries should not be cut. If any worker has taken leave during this period, such worker should not face any effective cut in salary and must be considered as employed or on-duty. Also, if it so happens that working from the office is not possible due to Covid-19, workers belonging to such working unit must be considered as employed or on-duty," the circular stated.

"The labour department has issued a circular directing the private sector employers to abstain from layoffs or unpaid leaves during this countrywide lockdown. Employees would be paid wages on the due date without any deduction during this period," Labour Minister Shivaram Hebbar said in a tweet.

The government will soon set up a labour helpline to receive complaints in this regard, Manivannan said in the circular. Organisations found violating the government’s directions will be penalised. "Any violation is punishable under the Disaster Management Act, 2005," the circular stated.

This move is expected to help the working class in factories and other establishments.