Good news for Employers

Yesterday, a friend shared with me his relative's plight. For the first two months during Corona lockdown he paid full wages every month to his 1500 employees. That's a huge chunk of money. Looking at the rapidly depleting reserves in the face of no incoming revenues, the entrepreneur held free and frank chat with the staff/workers, laid down the cards on the tables, together with his financial limitations. The staff agreed and the salaries were brought down in phases to levels between 20 and 35 per cent. Most of his employees are staying on at those reduced salaries. The story may have got its "sentimental" touch, but, if true, it does go to prove that consultation and communication can lead to acceptable solutions.

This may be good for the startups but in established private companies, the employers are likely to misuse this provision. Employees of these private companies are already in trouble. Being mostly middle class people, they can't either beg on the streets nor be comfortable with high salaries and therefore immune to gap in salaries. The prudent solution would be to reduce the salaries at various levels by various percentages so that their minimum subsistence continues till the crisis is over and bring back them to the same level of salaries as before, once the crisis is over. Even in private companies those who directly worked on government projects got full salaries even during lockdown and those who worked on other projects (which suffered and were at standstill during lockdown), were partially paid or let off. This has therefore been a discriminatory treatment on part of the private employers. This issue also needs a proper resolution.

GOOD MOVE BY THE COURT - THIS IS THE WAY FORWARD FOR BOTH TO SURVIVE

But what about employees ? Where they have to go for ?

Dear Client, In the current Pandemic situation we continue to monitor Coronavirus (COVID-19) developments closely. The health and well-being of our associates, clients, and our employees is of utmost importance to us. As a partner to your business, we also expect that the current situation may have an impact of some delay in our services. We are taking necessary measures for the safety of our staff including encouraging work from home, rotation of Workload and functions and other measures. India has completed over 60 days of a country wide lock-down. In India the lock-down has now been extended by the Indian Government and various state governments until 31st May 2020. Although the authorities have relaxed certain norms for Private Offices, we at KMC are currently continuing in "Work from home" (WFH) mode as the safety and wellness of our Clients and Employees is of utmost importance to us. We are keenly focused on our preparedness efforts to maintain a safe work environment and to continue providing uninterrupted services to you. However it is possible that the current situation may result in some delay in our replies and responses. We sincerely regret the inconvenience caused to you. Our Work From Home Contact details are as under: Work From Home Help Desk : +91-8104361542 Audit and Tax WFH Desk: Arpit Jain +91-9833408745 Suchi Vora: +91-8356005823 Karan Chheda: +91- 9930837831 Prashant Phalke: +91- 8898998003 GST Help Desk: Manit Chauhan: +91-8454933515 Rakesh Patel: +91-7678051114 International Taxation and Remittance Desk : Priyanka Shah: +91-9773882663 Escalation: Sameer Mehta: +919820355459 Viral Mehta +91-9819619296 To all our clients who are sustaining their business through this crisis, we are with you in these difficult times. To those Clients servicing the nation as part of the essential services, we are proud to be associated with you. We sincerely advise you to keep calm and not to panic and take necessary precautions as advised by the Government. Together we will pass over this difficult times. Stay Safe. We value the trust that you have placed with us and request your support and understanding in this regards. Thank you for your understanding ! Regards, Sameer/ Arpan ------------------------------------------------------------------------------------------------------- KIRAN MEHTA & CO. Chartered Accountants Office No: 11,12 & 13, 2nd Floor Medows House, Medows Street, Flora Fountain, Mumbai 400 001, India Direct : 91-22-67495277 Board Lines : 91-22-67495263 -77 Fax : 91-22-22641135 Email : sameer@kiranmehtaca.com Skype : sameer50 -------------------------------------------------------------------------------------------------------