Burning Questions : Covid-19 Implications on Lives and Businesses
Human lives are important, hence, to prevent the transmission of Covid-19, organisations have had to implement a temporary, partial or total lockdown depending on what sort of services they render. Either option taken will affect our economic, physical and mental wellbeing. For instance, if a business decides on taking the partial closure route, who goes and who stays? Sooyah Bistro by Banky W is an example of a business who took the partial closure approach by shutting down their Lagos mainland outlets and restricting operations to their Island outlets through the provision of temporary accommodation within close proximity for few employees who are to undergo various Covid-19 preventive measures to operate. Likewise, the travel and tourism industry have had to completely shutdown their operations to reduce exposure and spread of the virus.
At this point, unemployment will be on the rise, recruitment will be placed on hold and business transactions will be cancelled or postposed (Read my fair share here) . Just yesterday 30th March 2020, the Federal Government exercised its veto power by directing a lockdown in FCT, Lagos and Ogun state, as a more decisive measure of containing the dreaded Covid-19 spread. Now, companies have had to go to their drawing tables. Do we place staff on unpaid leave? Do we pay them just their Basic salary? or 50% of their net? or give a flat rate?
All these are quite unusual and there’s actually no template to work with, so i find myself asking if we now have to remit pension, NSITF, PAYE and other statutory levies at this critical time. Hopefully, there will be an end to all this, but how many businesses will recover? Will recovery be immediate? some may require some time, and while they wait, do they now recall their staff?
We really do not have all the answers to these burning questions. I think Parastatals in charge of statutory fees will be in the best position to advise on monthly remittances, and I believe organisations may adopt strategies on whether to pay just basic salary or give unpaid leave based on their current realities. Whatever measure they decide should be fair, as they implement what works best for the organisation based on their revenue and business needs.
This is going to be a tough situation for both the employees and employers too........ In this case for instance NEGOTIATIONS, EMPLOYEE ENGAGEMENT necessary so both parties can get a better solution and a way forward.......
ReplyDeleteA similar situation happened between Barcelona football team and the Board of directors where they had to come to agreement to take 70% of their wages... The board meet with the team Representatives i.e Club captains to NEGOTIATE before they accepted the paycut because of the CORONAVIRUS PANDEMIC (COVID-19) which was already the Club finances.....
In all fairness as you have rightly said. Employers and Government had a lot on their sleeves regards renumeration, business continuity. On the other hand employees too must not suffer much from the pandemic. This is the time we need experts and most experienced on way forward... Great write up.
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