‘Firms can’t force employees to take leave without pay’

Experts point to government clarification

04/04/2020, SANJAY VIJAYAKUMAR,CHENNAI

Companies cannot force employees to take leave without pay amid the 21-day lockdown imposed by the government to control the spread of COVID-19, according to experts.

“In general, annual leave is a statutory entitlement to be availed at the employee’s discretion and as per terms of company policy. It cannot be forced upon the employees,” Vikram Shroff, head of HR Laws at Nishith Desai Associates, said. The government has clarified that employees shall be deemed to be on duty in case of a lockdown. The employer may treat it as leave without pay if an employee refuses to work from home, he said.

Mr. Shroff pointed out that as a result of a natural calamity, factories and industrial establishments may be able to lay off its workmen in compliance with law and the employer’s Standing Orders, subject, however, to the government notifications. S. Ravindaran, a senior advocate, said the legal compulsion to suspend the operations/activities in factories, shops, commercial establishments/offices, etc., did not result in denial of wages to employees, including contract workmen.

An employee could be denied wages only when he was absent from work or when he was on strike and, therefore, all employees, including contract workmen, were entitled to full wages lastly drawn by them during the period up to April 14, he said. S. Kannan, CITU president, Kancheepuram district, said the State government had to pitch in to clarify on the issue of wages.

“This is an extraordinary situation. Even in times of floods and cyclone, the recovery has been fast. If companies cut things like shift allowance or conveyance it is understandable. But cutting basic wages is not acceptable,” he said.