The document discusses the pre and post pandemic employability scenario in India. It provides details on: - The COVID-19 outbreak and lockdown phases declared in India - The impact on labour and employment, with an estimated 25 million jobs threatened globally and India's unemployment rate rising to 26% - The major industries impacted like hotels, restaurants, retail, auto and ancillary - Labour issues reported in the news of some companies firing employees while others increased salaries - Government support needed for industries like simplifying labour laws and providing relief packages - Key compliance like social distancing and health checks required in workplaces - Labour cases filed in courts regarding non-payment of wages during lockdown - FAQs around

1. Pre and Post
Pandemic
employability
scenario in India

2. Coronavirus disease 2019 (COVID-19) is an infectious disease caused by a new type of
virus. The disease originated in Wuhan, China and has since spread globally. On March
11, 2020, the World Health Organisation declared the COVID-19 to be a global
pandemic. The first confirmed case in India was on January 30, 2020. Since then, there
has been a consistent rise in the number of cases within the country.
Lockdown declared in India
 Phase 1: 25 March 2020 – 14 April 2020 (21 days)
 Phase 2: 15 April 2020 – 3 May 2020 (19 days)
 Phase 3: 4 May 2020 – present
(scheduled to end on 17 May 2020)
Overview

3. Covid-19 Growth in India

4. MHA Issued the Order no. 40-3/2020-DM(A) dated 29.03.2020 by using legislative power
under Section 10 (2)(1) of the Disaster Management Act,2005 (DM Act). Few of the
important points are highlighted below:
• Order issued in line with the provisions of DM Act and Epidemic Act.
• Provisions of DM Act supersede all other enactments.
• The period of lockdown is to be treated as ‘paid holiday’.
• During lockdown, none of the employer can either lay off or retrenchment as per the
Industrial Dispute Act.
• Non-payment of wages or termination during lockdown period attracts legal action.
Ministry of Home Affairs Order and its implications

5.  International Labor Organization (ILO) estimated that globally more than 25 million
jobs would be threatened due to the spread of corona virus. It is estimated that four
out of five people (81%) in the global workforce of 3.3 billion are currently affected by
full or partial workplace closure. The US, UK, Canada and most of the European and
Asian countries have begun to register huge job losses leading to significant rise in
unemployment rate.
 The unemployment rate in the country has now risen to 26% as of April 20th
according to a report put out by the Centre for Monitoring Indian Economy.
 Understandably, this indicates that the current nationwide lockdown has been the
biggest job-destroyer ever in the history.
Impact on Labour and Employment

6. As per PTI, about 400 million people working in the informal economy in India are at risk of falling
deeper into poverty due to the coronavirus crisis.
Industries which will have major impact due to Covid 19
 The industries like hotel, restaurants, travel, airlines will have 56% impact.
 The retail industries will have 50% impact.
 The auto and ancillary has 38% Impact.
 Pharmaceutical industries has 26% impact.
 Insurance industry has 11% impact.
 Accounting and finance has 10% impact.
 IT-software has 9% impact.
There are other industries as well which are linked to them directly or indirectly will have major
impact e.g. ITES/BPM Industry.
Labour and Employment Impact on Industries

7. Labour and Employment issues in News
During lockdown few companies fired the employees and it was
discussed in media as well and few of them increased the salaries as
well.
Teleperformance terminated 300 employees in Kolkata
Fareportal terminated 300 employees in Pune
Amsdoc BPO terminated 150 employees Pune
Wipro terminated 300 employees in Pune
Capgemini increased the salary of 84K employees during lockdown
TCS will allow 75% of employees to work from home after lockdown
There are various others companies who initiated the actions but till
now it is on hold due to intervention from labour department.

8. It is important to adhere the guidelines defined by the MHA and below are
the few important instructions which one should follow:
Social Distancing:
 Alternate workstation seating arrangement
 Avoid overcrowding of elevators
 Adhere to social distancing norms
Personal Hygiene, Cleanliness & Safety:
 Hand sanitizers
 Gap between shifts
 Frequent hand wash
 Carry your own food
Mandatory Health Checks:
 Mandatory temperature screening
 Aarogya Setu App
 No visitors are allowed
 Avoid stepping out of office premises/ building
Covid 19 Regulatory Compliance

9. Central Government and State government should come up with the plan to ease the doing
of business and they should come up with the following plans.
 Labour Laws should be simplified
 Exemption in GST, PF etc.
 Exemption in various registrations.
 Relief Package for industries
 Inspection should be put on hold till the time industries recovered.
 Government should tie-up with other countries and try to get the new business in
States.
In nutshell, if government extend the support, it will definitely impact the labours and they
will be able to work and industries will not focus on lay off or retrenchment etc. and life
cycle of labours and employees will move.
Government support required for Industries

10. Status as on date
MHA Order dated 1st May, 2020 extended the lockdown for 2 weeks but relived the industries and
allowed few activities based on the risk profiling the district into Red, Orange and Green Zone.

11. Labour and Employment cases in Court
S. No.
Case
No.
Diary No. Date of Filing Petitioner Prayer Current Status
1
W.P. (C)
471/20
20
10928/2000 15.04.2020 Nagreeka Exports
to quash Government of India Order/notifications
directing payment of full wages to workers and employees
during the lockdown
Pending
2 N.A 10948/2020 17.04.2020
National Alliance of
Journalists
suspension of all retrenchment, salary cuts and sallied
orders by media houses against its employees till further
orders.
Matter was listed on 27.04.2020 before the
Hon’ble Supreme Court. The Hon’ble has
issued the notice to the opposite party.
Matter will tentatively be listed on
15.05.2020.
3 N.A 10983/2020 22.04.2020 Ficus Pax (P) Ltd.
to quash Government of India Order/notifications
directing payment of full wages to workers and employees
during the lockdown.
Matter was listed on 27.04.2020 before the
Hon’ble Supreme Court. The Hon’ble has
issued the notice to the opposite party.
Matter will tentatively be listed on
15.05.2020.
3A
All India Central Council
of Trade Unions (AICCTU)
Intervention application filed by the Union in Diary No.
10983/2020 for opposing the prayer made by the
petitioner.

12. Labour and Employment cases in Court
S. No. Case No. Diary No. Date of Filing Petitioner Prayer Current Status
4 N.A 10986/2020 22.04.2020 Rajesh Inamdar
Initiate action against the employer for violating the order dated 20.03.2020 and
29.03.2020. Directing the employer to pay subsistence allowance instead of
terminating
Under defect. Likely to be listed on 04.05.2020.
5 N.A 11016/2020 25.04.2020 MR. BHANUPRATAP BARGE Pending
6 N.A 10993/2020 22.04.2020 Ludhiana Hand Tools Assn
to quash Government of India Order/notifications directing payment of full wages
to workers and employees during the lockdown.
Matter was listed on 27.04.2020 before the
Hon’ble Supreme Court. The Hon’ble has issued
the notice to the opposite party. Matter will
tentatively be listed on 15.05.2020.
7 N.A 11094/2020 01.05.2020 Teknomin Construction Limited
to quash Government of India order/notifications directing payment of full wages to
workers and employees during the lockdown.
Pending
8 N.A. 11048/2020 28.05.2020
Instruments And Chemicals Private
Limited
to quash Government of India order/notifications directing payment of full wages to
workers and employees during the lockdown
Case under defect.Likely to be listed on
04.05.2020.

13. Whether compliance with the lockdown pursuant to COVID-19 is mandatory for all establishments irrespective of the nature of
work performed by the establishment?
 As per the guidelines issued by the Ministry of Home Affairs read with the addendum3, all establishments, except those engaged
in providing essential services or engaged in manufacture of essential goods, shall be closed during the lockdown.
Can employees of establishments which are closed due to lockdown be made to work from home during such period? Whether
the employer is obligated to pay full remuneration to the employees for the work done by them during the period of work from
home?
 Yes, employees of establishments closed on account of the lockdown can be made to work from home during the said period to
the extent that the nature of their work allows work from home.
Whether the employees, working in the establishments where the nature of work is such that it cannot be performed from
home, are required to be paid salary for the duration of lockdown?
 Yes, the employees working in establishments where the nature of work is such that it cannot be performed from home, are
required to be paid salary for the duration of lockdown.
Few Important FAQs for reference

14. Whether an employer is liable to pay wages for the period of lockdown due to COVID-19?
 In the light of Ministry of Home Affairs (MHA) Advisory dt. 29.3.20200 , directions which have been issued are: ‘The period of
lockdown is to be treated as ‘paid holiday’ and no employee will be terminated during lockdown’. Therefore, as position stands
today, the employer is liable to pay wage for the period of lockdown.
Can the salaries be reduced or deducted ?
 Salary cannot be reduced or deducted for the reason that such power should be available to the employer in terms of
appointment letter issue to the worker. Normally, such power of deduction is not available in any appointment letter and
therefore deduction or reduction in salary is not possible unless the workmen agrees for it. There is one more problem: As per
provisions of Employees Provident Fund & Misc. Provisions Act the amount of contribution cannot be reduced and from that
point of view also reduction or deduction in salary is not feasible.
Can the employees be asked to utilize their accrued annual/privilege leave for absence during lockdown period ?
 No. In my opinion the employees who have been asked to utilize their PL is not permissible as per the advisory. The advisory in
fact clarifies that if an employee is already on leave before effecting lockdown, even that employee will also be entitled to wages
for the days of lockdown. Therefore, in my opinion gimmick of encashment of accrued annual privilege leave should not be
resorted by the employee during lockdown period.
Few Important FAQs for reference

15. Can the employees of industry exempted from lockdown period such as essential services provider refuse to join work ?
 Employee engaged in essential service industries cannot refuse to join the work and if he fails to join work, he will not be
entitled to any salary for those days.
Can the employees of essential products industry etc. exempted from lockdown period refuse to join work ?
 Employees of essential service refusing to join work will be liable for disciplinary action from the management side and will not
be able to claim any wages for this period.
Is it necessary to renew contract if it was to be expired on 31st march?
 In such case also the contractor/principle employer is liable for wages to the contractor workers ? If the contract is expired on
31st March 20, in that case liability will be restricted till 31st March 20.
Can employer reduce manpower after lockdown ?
 The question of reduction of manpower can definitely be considered after lifting of lockdown but not during lockdown.
Few Important FAQs for reference

16. Thank you
by
Deepesh Kumar