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COVID-19 effect: SpiceJet to pay employees based on work hours

FPJ Web Desk | Updated on: Monday, May 31, 2021, 05:58 PM IST

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The second wave of COVID-19 has severly impacted various sectors of business as many state governments had imposed lockdown to curb the spread of virus. The aviation sector too has been badly affected by the second wave as many of the flight services were cancelled leading to a loss of airlines. One of the known airlines, Spicejet has decided to go back to their structure of paying the employees according to their working hours.

As per a report, on Sunday the airlines sent an email to its employees stating that India is currently going through one of the worst Covid-19 outbreaks in the world and passenger traffic has fallen to under 10% of pre-Covid levels.

The mail read, “Much like last year, the second wave of Covid-19 has hit the Indian aviation industry the hardest, but this time the impact has been much more severe especially on our industry. During this second wave the passenger traffic has fallen to less than 10% as compared to the pre-Covid levels."

Announcing salary cuts, the airline mentioned, “Under these extreme and unavoidable circumstances which we are currently enduring, the company is reverting to the structure where employees will be paid according to the work hours contributed while maintaining basic thresholds.” However, salaries of the lowest grade employees will not be deducted, it added.

It further clarified, “While the salaries for the month of May shall be credited to your bank accounts on 1 June, there will be graded deferment of up to 35% for some of our employees. The deferred amount will be released from second week of June 2021 onwards. Our colleagues in the lowest pay grades will be unaffected by this deferment and their salaries will be paid in full.”

The mail further read, “This sudden drop due to unprecedented surge in Covid cases coupled with varied travel restrictions across India has adversely affected our revenue and cash flows. It is still unknown whether the cases have peaked-out or the traffic has bottomed-out,”

The Ministry of Civil Aviation (MoCA) has also capped the capacity for domestic flights from 80 percent to 50 percent. Moreover, according to civil aviation regulator Directorate General of Civil Aviation’s (DGCA) latest monthly report, domestic carriers registered 57.25 lakh air travellers in April compared with 78.22 lakh in March.

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Published on: Monday, May 31, 2021, 05:58 PM IST