Coronavirus Outbreak: Central Government Advises Employers Not To Terminate Employees

The Ministry of Labour has issued an advisory asking employers to not terminate employees, particularly casual or contractual workers. The advisory also says that employers must not reduce the wages of workers. The Maharashtra state government issued a similar advisory earlier this month, advising employers not to retrench workers or reduce wages.

The notification comes in the backdrop of the potential damage to the economy from the outbreak of the novel coronavirus. Several states have shut down malls, offices and restaurants to counter the Covid-19 pandemic. With infections maintaining an upward trajectory, at least nineteen states and union territories have imposed a complete lockdown.

The ministry has advised employers to:

• Participate in the joint efforts of the society to combat coronavirus.
• Employers must co-ordinate by not terminating employees, especially those employed on casual or contractual basis.
• Employers must also refrain from reducing workers’ wages.
• Any worker taking leave or unable to work due to inoperative workplace caused by Covid-19 must be treated as “deemed to be on duty” and employees must not do any consequential reduction in their wages.