[Samurai]

Originally Posted by tilt

Pardon my ignorance, but why would any private company need any permission from the government to let people work from home? Or am I misunderstanding your point?

Call center center agents take calls using VOIP. In India, VOIP usage for business has ridiculous amount of restrictions.

WFH for call center agents means the VOIP traffic will travel from the call center to the home PC of the agent. This is different than a techie logging in from home to work on some application, at least in the mind of DOT officials.

[avaneesh.]

I work for an ed-tech startup, which supplies online content for kids, through schools. We were starting to up the game with our product, just when the pandemic started. All of our customers also are struggling to pay, which has made our company to panic. If the situation persists they won't be able to pay us. Some of the compassionate employees have agreed to take a pay cut or delayed salary whereas others might not agree for the same. With situation turning grave day by day, I have no hopes left. We are trying our level best to change from b2b to b2c but that doesn't happen overnight. I can only hope that the situation improves.

[ramzsys]

Originally Posted by AMG Power

As I post this, the Finance Minister is announcing various relief measures live on news.

Amongst this dates for filing IT, GST extended.

Sensex up by 1200 points.

-slow claps-

Now that sensex is starting to bounce, all is going to get well with the Indian economy, right bhpians?

If only politicians harped on real growth than take claim for markets reaching new heights, they don't have to do all this PR to window dress the economy during times of crisis and instead spend that time on setting the fundamentals right.

[m8002?]

One sensible news from TN govt. This should be done across the country.
https://news.rediff.com/commentary/2...1afbd67e2ebbf7

The business guys can better explain if the initiatives from center will really make a difference.

[anjan_c2007]

All Utopian and high level thinking ! Do the businesses have unlimited funds in their coffers and are these funds earmarked to flow generously for the employees benefits, as per the statement ? Most of the airlines have announced pay cuts for staffers, the same day this idealist statement was made.

And talking about the sensex and nifty gains, these are just knee-jerk reactions to some contingent announcements for bank transactions (hardly matters) and for extending the end date of the current fiscal 2019-20 to June 30, 2020. The sensex gains will very soon be neutralised, also turing negative given the overall gloomy economic scenario. Only after the pandemic fears fully recedes and normal work routine begins can we hope for some real, genuine, noticeable and tangible gains.

Back to the layoffs and salary cuts in the private sector, the point is unless the employers get some sops especially through tax holidays or financial encouragement from the govt, only a miniscule number of them will obey the statement by compensating employees for the salary losses. Tata Steel has already announced it's paid holidays to employees and only a handful of other companies may follow. Also some state governments have proactively taken policy decisions to bear a part of the salary losses to the affected private sector employees.

[Kosfactor]

I met many people who cheered for this news however there is a problem!

As per the last economic survey - salaried class is only 23% of the total workforce. It does not end there - as per CBDT "Of the 5.78 crore returns filed during this financial year,4.32 crore individuals have disclosed income up to Rs 5 lakh, it also said."

There are certainly employers who can afford to keep paying the salaries, but that may not be the majority of employers.

We have also read news about labour force participation rate, which is at 49% as per NSSO, altogether if the show does not go on, we are going to see a lot of casualties in the unorganized sector.

[charanreddy]

Regardless of what the government says, it’s not viable to spend in salaries and other costs when revenues dry up. Some of the big players may have enough cash to wait this storm out, most of the others not so much.

As an employee, I am willing to take a cut when I am not working to full potential or when the company is not doing so well. You can’t spend money you don’t have or don’t see a way of making.

At home I will pay my domestic staff salary for some time as it’s not likely to affect my finances much. If it was, I would definitely communicate the same and not do it anymore

[yamaniac]

This is a serious situation we are in. There is no news from the Banks if they will give a grace period on EMI's and with Loss of jobs looming around and a possibility of a major recession.

The businesses are expected to pay salaries, even when they do not have incomes. They also have rent, they also have electricity bills, they also have 1 zillion other expenditures.

The govt. hasn't come up with anything positive. postponing filing returns and waiving off ATM transaction for 3 months when you are unable to go out because of the lockdown. What purpose does this serve exactly? Plus the ability to raise fuel excise duty up till rs 18/- if needed.

I think the least they should do is refund the taxes that the Salaried classes have paid this year so that we can at least cushion this shock.

People are going to be at their wit's end if things are managed like this.

[Raulspace999]

The Hospitality Industry has already started feeling the heat with one of my acquaintance who had to take a 45% pay cut for the next three months or stare at the prospect of losing his job. Although, the impact at the VP Level is not that significant any cut in the take home severely dents yours morale especially when you have bills to pay and a family with dependents to look after.

The situation goes on a downward spiral when you are the sole-breadwinner in the family.

A noob question to the financial wizards in here:

What if a person has taken a personal loan(unsecured loan) and is unable to pay his EMIs due to loss of earning/job? Will the bank impose a moratorium or consider the borrower's plea on humanitarian grounds?

A reply to the aforesaid query will be highly appreciated.

[whitewing]

Originally Posted by Raulspace999

What if a person has taken a personal loan(unsecured loan) and is unable to pay his EMIs due to loss of earning/job? Will the bank impose a moratorium or consider the borrower's plea on humanitarian grounds?

This would have to be negotiated with the bankers, till now I haven't read any announcement on that. Given the massive impact that this has on the businesses, and financial markets, one would expect that something on the lines of a moratorium would be announce.
Rather than waiting for a decision or default, best would be to start discussion with the banker. If nothing, a paper trail is created.

Originally Posted by Samurai

If the government can't relax these payments when they tell businesses to shutdown, they have no right to ask businesses to keep paying salaries.

Absolutely, and that is the least the government can do to the taxpayers (in a nation a large number do not pay) hoping fiscal deficit/prudence is sacrificed for the sake of long term economic well being.

Originally Posted by Malyaj

My restaurant has been almost bludgeoned to death by this epidemic. Like a good citizen I downed shutters a week back, much before janta curfew became a buzzword. ... I ensured that there is enough inventory in the restaurant for the staff to consume in case the lockdown continues for long. We care for our staff more than these politicos will ever, even for their own kind.

Originally Posted by Samurai

Demand things, and threaten them with dire consequences. They simply don't have the habit of helping. Most of them will be confused and won't even know how to begin the process of helping the very businesses they have already treated like ATMs and serfs.

Very pertinent points those, the last mile of babudom has been a challenge and if that attitude changes, we also will find a pot of gold at the end of a rainbow.

@Malyaj can only applaud the steps you have taken for the well being of your employees. I guess you are in a industry that has felt the first side effects virus, I can only imagine the soul searching that is done before taking a hard decision. Wishing you & us better times ahead.


Just as the neem leaves and jaggery we have for Ugadi festival, which signifies that life is a mix of bitter and sweet experiences. Hope the year that has started on a bitter note, takes a sweeter turn in the coming day.

[Kosfactor]

Sadly we are now creating a problem to solve it later. You will see celebrities endorsing the lockdown in the coming days asking people to stay at home not to step out etc etc as if they are going to deliver vegetables for me today morning, they have no clue of the problems of a common man (voiceless).

My take is that if medical professionals can come to work saving lives, we too can learn to take precautions, wear protective gear and go to work. As I said to my team, the show must go on.

You can't win a battle by sitting inside a bunker and eating MRE.

Pay cuts matter to those who get salaries, those who do not get salaries and those who do not have a regular job far outnumber the ones who are willing to take a pay cut. Thankfully half of the labour force was already without a regular job thanks to our wonderful economy.

I know my neighborhood ironbox guy is going to have a hard time, the scrap shop recycling guy whose daughter is specially abled child is going to really struggle with his shop being closed etc etc.

-------End of Rant, Happy Ugadi--- I am going to now clean my vehicle, take it out for a spin , survey the neighborhood shops to see which ones are open.

[sudeepg]

The Govt is unlikely to announce any relief packages for businesses for the next two weeks where they will wait & watch while (hopefully) they try to come up with a relief package. Most companies may be able to survive for a few days, if not weeks I guess. If the situation improves, then no need to implement it, if it gets worse, slowly loosen the strings.

The immediate hit are the daily and weekly labourers who will be devastated. I hope the Public Distribution system functions well and there are no malpractices. Chances are high given that hoarding, re-sale in black are very much the traits of people in that distribution system.

Sigh! What a pandemic!

[omranga98]

We have an export business with EU and seeing how the situation is, both here and there (especially Germany and Italy), chances of recovery of the business this year is next to nil. This is certainly a bad news for the company as well as our employees. But we made it a point to not cut salaries of any of the employees. Plus we are also treating daily wagers as monthly salary earners and have set an amount for them depending on their level in the system. It is extremely crucial to understand that these people have families to feed too and when most of their family income depends on your organisation, i feel it is sort of your duty to full-fill during these unprecedented situations and we can only work our way through this together. Do it as far as it doesn't cause irreparable damage to your company,but certainly do it.

[laluks]

A few MNCs that I know of have asked their employees to go on forced leave till April mid in India. And the same guideline applies at their headquarters also. But there is a difference - those governments pay them an amount during this lock down.

[AZT]

Originally Posted by Kosfactor

As per the last economic survey - salaried class is only 23% of the total workforce. It does not end there - as per CBDT "Of the 5.78 crore returns filed during this financial year,4.32 crore individuals have disclosed income up to Rs 5 lakh, it also said."

There are certainly employers who can afford to keep paying the salaries, but that may not be the majority of employers.

We have also read news about labour force participation rate, which is at 49% as per NSSO, altogether if the show does not go on, we are going to see a lot of casualties in the unorganized sector.

Many Small & Medium businesses will not be able to get back up if there is a 3 month hit to business. Restaurants and retailers who have premises on rent will be the worst affected. Sadly, there is no other way except the lock down.

Big bailouts and stocks going up is good but it is these small businesses that employ a majority of people and right now there is no silver lining for them.