Hi everyone,
I am working in a health tech startup company as the HR admin. We have provided a work-from-home option for all employees. Is it mandatory to provide full salary for the employees during WFH, or can we deduct 25% from their salary due to a perceived lack of efficiency while working from home?
Additionally, I would like to seek advice on the leave policy for employees affected by Covid-19. Should we offer full salary for 14 days without deducting from their leave balance, or can we adjust this with the leaves they have already taken?
Thank you for your guidance.
From India, Kochi
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I am working in a health tech startup company as the HR admin. We have provided a work-from-home option for all employees. Is it mandatory to provide full salary for the employees during WFH, or can we deduct 25% from their salary due to a perceived lack of efficiency while working from home?
Additionally, I would like to seek advice on the leave policy for employees affected by Covid-19. Should we offer full salary for 14 days without deducting from their leave balance, or can we adjust this with the leaves they have already taken?
Thank you for your guidance.
From India, Kochi
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Payment of full salary during the WFH period is the best option and would keep your employees happy and motivated. By all means, if you can manage it, that is the best. However, if your financials are not permitting, then you can stop payment of conveyance allowance, uniform allowance, attendance bonus, entertainment allowance, etc., which are linked to the employees' presence at the work spot. The drop in effectiveness on account of WFH is not due to employee-related matters but is a work system issue, and the employee cannot be held responsible or made to lose salary on this account.
Whether the quarantine period is to be adjusted against the leave to the credit of the employee is reflective of the approach the organization has towards its employees. If they are seen as only a pair of hands and are destined to work for you, then leave will be deducted. However, if the approach is that every employee is a human resource and this resource takes care of all others (say the Human Resource Approach), then the period of quarantine leave is not adjusted against any other leave.
From India, Mumbai
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1656Whether the quarantine period is to be adjusted against the leave to the credit of the employee is reflective of the approach the organization has towards its employees. If they are seen as only a pair of hands and are destined to work for you, then leave will be deducted. However, if the approach is that every employee is a human resource and this resource takes care of all others (say the Human Resource Approach), then the period of quarantine leave is not adjusted against any other leave.
From India, Mumbai
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In the first COVID-19, there were instances where salaries were deducted.
It is not fair on the part of the employer to deduct wages from employees for no fault of their own. The employer advised employees to work from home; hence, deducting wages is not advisable.
In the IDA (Industrial Development Area), conveyance/washing/hazardous allowances were not paid, stating the reason that employees were not advised to report for duty, and they are entitled to only Basic pay and Dearness allowance. Many complaints have been filed with the labor department.
Last month, they declared a lockdown period. The State Government categorically stated in the G.O. that during the lockdown period, no allowances should be deducted from the salaries of the employees.
From India, Hyderabad
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It is not fair on the part of the employer to deduct wages from employees for no fault of their own. The employer advised employees to work from home; hence, deducting wages is not advisable.
In the IDA (Industrial Development Area), conveyance/washing/hazardous allowances were not paid, stating the reason that employees were not advised to report for duty, and they are entitled to only Basic pay and Dearness allowance. Many complaints have been filed with the labor department.
Last month, they declared a lockdown period. The State Government categorically stated in the G.O. that during the lockdown period, no allowances should be deducted from the salaries of the employees.
From India, Hyderabad
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Legally, you should pay the full salary when a person is working from home. All over the world, it is found that his/her output has increased. Secondly, the company is making a massive saving by not operating the office. Electricity and water saving itself is a significant amount. The employee pays for electricity when working from home.
Think of the situation positively to get better output from the employees. They would support more as they have less burden on traveling, etc. For Covid-19 quarantine cases, it is advisable to pay the full salary. Just study what Ratan Tata has done in the Tata Group. He has decided to pay the full salary to the family if an employee dies from Covid until his retirement age. Employment is a dual contract. Look after the employee, especially in difficult times, and they would look after the company.
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Think of the situation positively to get better output from the employees. They would support more as they have less burden on traveling, etc. For Covid-19 quarantine cases, it is advisable to pay the full salary. Just study what Ratan Tata has done in the Tata Group. He has decided to pay the full salary to the family if an employee dies from Covid until his retirement age. Employment is a dual contract. Look after the employee, especially in difficult times, and they would look after the company.
Acknowledge(0)Amend(0)
Legally, you should pay the full salary when a person is working from home. All over the world, it is found that his/her output has increased. Secondly, the company is making a massive saving by not operating the office. Electricity and water savings alone are significant. The employee pays for electricity when working from home.
Think of the situation positively to get better output from the employees. They would support more as they have less burden on traveling, etc. For Covid-19 quarantine cases, it is advisable to pay the full salary. Just study what Ratan Tata has done in the Tata group. He has decided to pay the full salary to the family if an employee dies from Covid until his retirement age.
Employment is a dual contract. Look after the employee, especially in difficult times, and they would look after the company.
Acknowledge(0)Amend(0)
Think of the situation positively to get better output from the employees. They would support more as they have less burden on traveling, etc. For Covid-19 quarantine cases, it is advisable to pay the full salary. Just study what Ratan Tata has done in the Tata group. He has decided to pay the full salary to the family if an employee dies from Covid until his retirement age.
Employment is a dual contract. Look after the employee, especially in difficult times, and they would look after the company.
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The Central Government had ordered during the first lockdown that employers would be required to pay the full salary for the lockdown period. However, that is struck down by the courts and is no longer applicable.
However, if the person is working, he is entitled to his salary. Deduction of salary at an arbitrary rate or percentage is not allowed. However, allowances that are related to attending office (travel allowances, washing allowance, lunch allowance, etc.) can be denied. On the other hand, the employee spends more money on his power bill, AC, Internet Connection, etc. The courts have not given any verdict on the same yet, as most of the employees have accepted that certain cuts would be there during a crisis at this time.
Under various laws, including the Industrial Dispute Act, the employer cannot unilaterally reduce wages or change the terms of employment. It has to be agreed upon by the employees as well. So you may have a problem under that also.
From a productivity and long-term labor relations point of view, you should avoid such a deduction in any case.
As regards salary for the quarantine period, Maharashtra has passed an order under the Disaster Management Act that any employee who contacts COVID while he is coming to work (meaning if he is not WFH), then the salary will be paid for the full recovery and quarantine period by the employer. Further, this also applies to those who were forced to travel due to work reasons and are quarantined on account of contact in the office or during travel for work.
I suggest you look at the orders issued by your state government.
From India, Mumbai
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However, if the person is working, he is entitled to his salary. Deduction of salary at an arbitrary rate or percentage is not allowed. However, allowances that are related to attending office (travel allowances, washing allowance, lunch allowance, etc.) can be denied. On the other hand, the employee spends more money on his power bill, AC, Internet Connection, etc. The courts have not given any verdict on the same yet, as most of the employees have accepted that certain cuts would be there during a crisis at this time.
Under various laws, including the Industrial Dispute Act, the employer cannot unilaterally reduce wages or change the terms of employment. It has to be agreed upon by the employees as well. So you may have a problem under that also.
From a productivity and long-term labor relations point of view, you should avoid such a deduction in any case.
As regards salary for the quarantine period, Maharashtra has passed an order under the Disaster Management Act that any employee who contacts COVID while he is coming to work (meaning if he is not WFH), then the salary will be paid for the full recovery and quarantine period by the employer. Further, this also applies to those who were forced to travel due to work reasons and are quarantined on account of contact in the office or during travel for work.
I suggest you look at the orders issued by your state government.
From India, Mumbai
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