As you know,due to lockdown all operations of companies have been temporarily closed and all Economic activities have been halted. Everyone who is employed anywhere is worried about sustainability of there employment.
Among after effects of this pandemic, Unemployment and job loss is most critical one. I suggest some measures so that none of employees lose job. As given below:
1. Government should direct companies who paid dividend in last quarter of 2019-20(cash rich) or having low debt,shall not fire anyone. For this companies should be given defferred retention allowance which is to be utilised over next 5 year against income tax liability of those year.
2. Companies could be given option to reduce salary of all instead of firing except employees whose salary is below Rs.20000. Hence none will lose job and companies will be able to survive by reducing cost.
3. Vacant Posts in govt. and psu might be filled.
4. A Business continuity support department is to be formed for businesses employing >20 person and which are under stress to resolve their issues and avoid their closure.
5. All PSU’s and Government Departments should be directed to pay outstanding creditor’s due.
6. All PSUs and Government has a great role here. They except employees in emergency services should donate voluntarily or there salary should be deducted between 20% to 30% of take home salary (against which defferred deduction in income tax should be given in next 5 years) for paying regular amount to unorganised labour for 6 month. Thus Government employees will support labour’s of unorganised sector.
Here we each Economically stronger sections are supporting to weaker sections without losing any benefit.
(Writer Pradeep Kumar Varshney is a Chartered Accountant by Profession & an Expert of Economics)
