Alert For Employees: Vaccination Must For Salary Increments?

Soon, employee's salary will be hiked only if he/she gets vaccinated. As per a news report, several companies are planning to link the payouts like annual increments, incentives and commissions to the employee’s Covid-19 jab. In recent times, companies are putting stress on employees to get vaccinated so that they can reopen offices and resume normal operations in the next three-four months.

“As per the law, the vaccination should be voluntary and forced vaccination is against fundamental rights. But the companies do not want to risk lives of other employees which is why they wanted to link their increments and career growth with vaccination,” said Anshul Prakash, Khaitan & Co. partner.

Some companies insist their employees take the jab if they wanted hikes in their salary. Besides this, some are holding 5% of the employee's salary and told that they will pay the amount only after they get vaccinated. This decision was taken by them as they do not want to run any risk once they reopen offices in the coming three or four months.

A senior executive of a corporate office said, “Though it is not mandatory to force individuals to get vaccinated, the companies are placing this as a primary condition to get back to offices. Companies may not take disciplinary action against those who refused to take the vaccine. However, they are considering the options like realignment of roles, loss of performance-linked incentives such as bonuses and commission to those working from home,” he added.

Large firms such as Tata Steel, Vedanta, ITC, Marico, Panasonic India, Amway, PhonePe, Grofers and McDonald’s are encouraging their employees to get vaccinated. Many of them had set clear deadlines for the employees for taking vaccines.

Tata Steel has issued guidelines for all employees, including contract workers and third-party vendors, to get at least the first dose by July 15.