Tue. Jul 7th, 2020

Corona: Companies are worried about how to keep employees’ salaries constant

2 min read
Companies are worried about how to keep employees' salaries constant

Companies are worried about how to keep employees’ salaries constant, The situation arising out of Corona has raised the concern of companies. The question before small and big companies is that how can they continue to pay salaries to employees after the work is stopped. Government has asked companies not to stop the salary of employees

Companies earnings down

Companies are worried about how to keep employees’ salaries constant, companies say that their income has reduced to zero as the work is stopped. In such a situation, there seems no way for them to continue their salary. Companies believe that they need the government’s help in this matter. The people associated with the industry said that this problem is not going to be solved by increasing the employment benefits through the Employees State Insurance Scheme. The Ministry of Labor had advised companies to use this route.

The supply of many things may be interrupted

Companies are also ascertaining whether the government’s directive to continue salary is legally binding for them. For example, under the Disaster Management Act, there is no legal obligation to continue remuneration. Companies are also facing the problem of the absence of employees. The government has said that even if employees do not come to work, they should be given a salary. In some cases, there may be problems in the supply of some things due to the employees not coming to work.

Hope for help from government

Heads of companies, entrepreneurs and MSMEs talked about this. Many of these people gave information on the condition of anonymity. Most heads of companies seem to agree with the government’s thinking that employees should not be made victims of this hour of crisis. But, they are asking if they can get help from the government to fulfill this responsibility.

Banks also need help

Deepak Sood, general secretary of industry body Assocham, said, “The working capital is under pressure. Industries are hopeful that banks will come forward to help in this regard beyond the RBI package.” CII President Vikram Kirloskar said that in the current situation it is also important that no employee is laid off. But there is a worry about the cost of this. Small industries have more money. They are more vocal about the problem. S Singla, the owner of a company that manufactures plastic tanks in Baddi, Himachal Pradesh, said, “The government can say anything. Will it pay a salary. I have to take 20 percent of the employees out of my job.”

7 lakh MSMEs may be closed

MSMEs and SMEs are finding themselves in difficult circumstances. Chandrakant Sanlukhe, who founded the SME Chamber of India, said, “I am afraid that after two months 5,00,000 to 7,00,000 MSMEs will be closed … We need big help from the government.” He told that most of the small units can give salaries for at least one month.

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