SC refuses to intervene in MHA order to pay salaries for the period of lockdown, MSME’s in a mess, what can be the resolution

SC refused to intervene: salaries for the period of lockdown

Its hard, for you, for us, for everyone. Employees suddenly lost their work and industry lost the production. MHA ordered the industry to pay the salaries for the period of lockdown. In the case of technology companies, it may be easy. they can arrange work from home. They can still pay. But in the case of labor-intensive companies, It is next to impossible. For many of them, it may be a question of survival. The government itself holds the DA of employees. Large companies like Reliance are cutting the paycheques. What can be the way out? How MSME will survive. They are not getting any benefit from the government. How they will be able to do it. SC refuses to intervene in MHA order to pay salaries but is it possible for MSME? Everyone is looking forward to creating new business. Competition is going to be very high. 

Why we are at extreme, There can be options:

Problem is genuine from both sides. The industry has its own issue and employees have their own. Now we need to think about this, what if we pay adjusted salaries. When an employee is working they have some extra cost. These costs may include travelling cost. Personal maintenance cost. Uniform allowance, health benefits etc. On the other hand, the industry is also saving some amount of electricity. Sitting cost and running costs hen employees are working. They both can sit and fins a midway. I have drafted some scenarios here.

Reduce the pay by a percentage:

In this case, the industry can make a cut of some % in the salary of the employee. They can ask them to fill a bond for some years for the support of Industry at this time. Or an agreement for extra hours working without pay may also be entered. Just think of a scenario, at this time company is paying and after two months the same employee leaves the company because he can’t get a raise here and got a better salary somewhere else. The company will feel cheated and stupid.

Pay half of the salary and pay the balance when work starts in installment:

This can be another scenario. No need to have a pay cut. Pay half salary to the employee and then make a promise to pay the balance once the work resumes. The balance of salary can be paid in installment during a period of time. This can save both sides. Even employees understand that if Industry will be out of money, without the support of the government, it will collapse. If that happens they will lose their job. Yes, they may try somewhere else but if this instance becomes so normal. There will be a huge inventory of employees searching for a job. Unemployment will blast at its worst. You will find an unemployed crown everywhere. Trust me that situation will be worst. Even more dangerous than the corona itself.

What should be the ideal course of action for the government

The government should definitely work on some midway, instead of forcing. There can be a policy like where the labour cost is more than 50% of the total cost. The government may allow 20% cut and can pay 20% to the company based on the labour charges in the last three balance sheets. At this point of time first focus of government should be to save the Industry. Because if the industry will survive, The unemployment will automatically be resolved. At this time when the government should be thinking of giving the incentive to start new Industry, They are forcing the existing for a permanent shut down. They may push the entire economy into a deep recession which will last for decades.

salaries for the period of lockdown, Detailed write up. Please add your own suggestions also.