The coronavirus pandemic has caused several problems worldwide. One of the biggest problems caused due to COVID 19 is employee termination from their jobs. Due to lockdown imposed by the Government in many economies the businesses have suffered greatly. According to Times report the World Health Organisation(WHO) on March 11,2020 declared COVID 19 a pandemic situation pointing to the over 118,000 cases of the coronavirus illness in over 110 countries and territories around the world and the sustained risk of further global spread. Since then every economy have been suffered badly. The worldwide depression in the economies has resulted in employee termination on a very high scale. The pandemic situation has also affected the demand and supply chain of several products except a few of them who were able to meet the demand with the supply. FMCG’s and medicines were the one’s which had regular demand and supply in the market. The pandemic has caused major losses in travel, automobiles, aviation and hospitality industry. As a result, these industries have faced large number of employee’s termination. Many companies also adopted for pay cuts from their employee’s salary in order to manage the finance of the company. The big market players of aviation industry such as Air India and Air Asia have either terminated their employees on a very large scale or adopted for pay cuts from their existing employee’s salary. The employees of many big aviation companies have challenged their company’s decision regarding the pay cuts and termination of employees in Bombay High court. The corona virus pandemic has majorly impacted the service sector in various economies. This emergency situation called on worldwide has left many people unemployed. The hospitality industry has also experienced high percentage of employee termination because of lack of demand. The Government of India has also taken several steps to re-start the economy again under Atmanirbhar package. According to the reports the trade impact of the coronavirus epidemic for India is estimated to be about $348 million. The country now figures among the top 15 economies that are most affected by the manufacturing slowdown in China, says a UN report. [3] The corona virus pandemic has also resulted in slowdown in the manufacturing industries which lead to high percentage of employee termination. Employee termination in the service sector has led to increased poverty and starvation in an economy. The United States of America has highest ever percentage of unemployment at this time due to corona virus pandemic. The closure in several economies has affected adversely. The Government of India asked the business firms during the lockdown to avoid pay cut or termination of their employees but the government took its decision back after the same was challenged in the Supreme Court. Many private and Government firms and institutions have either used pay cut or termination in order to manage their finances. The employees union is also taking part actively in the cases where the mega firms and companies are terminating their employees.
From the society point of view the employee termination at a very large scale is totally unethical but on the other hand it may be a necessity of a business to terminate the employees in order to balance their economic condition. But however the employee termination on a very large scale would lead to increase in crime rates and poverty in the society. A business is the means which create employment in the society and if the businesses are not financially sound and strong they will never be able to create employment in the society. So in order to create more employment opportunities there must be well established and financially sound firms in the economy. The government should also take certain steps which benefits the businesses and entire society. One such step initiated by the Atmanirbhar package of 20 lakh crores which was announced by Prime Minister Narendra Modi on May 12, 2020. The objective of the package was to provide relief in the response to COVID19 pandemic and revive the economy. This package majorly focused on Macro Small and Medium Enterprises (MSMEs) and launched several schemes and benefits in order to restart the businesses and industries. This scheme provided collateral free loans up to Rs 3 lakh core for MSMEs, Tax rebate and loans to have 4 years tenure with moratorium of 12 months on principle of repayment. But the major drawback of this package was that it did not directly focus on service sector. But somehow by giving benefits to MSMEs it focused more on creating employment by helping the small and medium scale businesses to bring the economy back on track. According to me, the idea of government of creating employment in the economy, by helping the MSMEs is really appreciable. This move of the Government would ensure that there are enough job opportunities created in the economy. Many specialists appreciated the government initiatives for creating the employment while the other specialists criticized the package too. The employee termination during COVID 19 not only impacted people economically but also psychologically. Due to unemployment many people are suffering from depression or any other mental disease. This period of lockdown and unemployment has left the people across the entire world in mental trauma. The existing employees have also great amount of pressure on them in regard to their job security and may sometime adapt to unethical practices in order to secure their job and future. The job loss has also created frustration and unpleasant environment in the family. The biggest ever economic crisis faced by major economies has high percentage of employee termination and pay cuts.
The high rate employee termination during COVID 19 is the biggest worry for many economies which has puzzled the task for many governments. The government is also trying hard to revive the things back but it is nevertheless a easy task. Reviving the economy and creating the employment opportunities again according to me is the most difficult task to be carried out in the coming future. Therefore it becomes important for the people to have faith in god and the government and keep their mind set positive.
Whatever the mind of man can conceive and believe, it can achieve. – Napoleon Hill
Hence the people must believe that there would be a time when everything would be sorted and economy would perform very well till then all have to do is keep their mind set positive and work more on skill development and time management. This will help them to become a better human being when they get back to work or job.
Eduindex News 