Emergency Compensation Policy to Manage HR during COVID Crisis

“Policy guidelines to help companies sail the ship in Coronavirus crisis times”


The rapid outbreak of the novel coronavirus has become significant business challenge. Where businesses are finding it difficult to perform their business operations despite their best intentions. One of the most common issues during pandemics and natural disasters is that the businesses don’t have disaster management guidelines. Which is why we have felt it important to guide organizations and help them come up with an action plan for situations where this outbreak becomes more widespread and more serious. The key is to be ready when the storm hits.

Since businesses across the globe are coming to a halt, and social distancing is being suggested to help against the virus spread, businesses are forced down to either reduce their operations to bare minimum or to temporarily close the workplaces. The biggest challenge in this case is how to compensate the employees when business operations would not be generating enough cashflows? Here are the few guidelines for different scenarios which can help you keep floating in the times of crisis.


Case # 01: Complete Lockdown OR Temporary Closure of Workplace


Our consultants at Highly Keen – The Management Institute suggest following courses of action in case the business goes for a temporary closure of workplace or faces a complete lockdown during pandemic tenure.



* All those staff members whose salary is PKR 25,000 or less OR they are daily wagers, can be issued a fixed monthly Food allowance of PKR 8,000 in all cases of lockdown. (This facility they can get upto maximum 90 days, this will be a facility where cannot be claimed as a right.


* The Months / Days which are declared as Emergency months and employees are facilitated through above mentioned formulas, their will be no balance salary and employees will not be able to claim any balances in next month.


* No claim or clearance of legal benefits is allowed in emergency month.


Case # 02: Running Operations


The businesses who are operating until they lockdown or decide for a temporary closure, need to follow following guidelines;


1. If any staff member is facing fatigue, cough, flu or fever, send them on immediate sick leave.


2. Adjust staff members casual leaves in addition to their sick leaves where necessary.


3. Utilize the Annual Leave Quotas of staff to send them on Off days or add that up in sick leave where necessary.


4. The Staff members who are above 50 Years of age must be sent on leave for atleast 30 days.


5. Utilize the work from home option as much as and wherever possible.


6. To reduce the crowd at workplace, opt for an alternate off day policy so that the operations can run, but there is not too much crowd, and social distancing can be made possible (Salary can be given for number of working days per employee).


7. HR Department shall make it a responsibility to visibly place “Corona Virus avoidance tips” at workplace and ensure people follow them at work for their own and other’s safety.


8. Cafeterias need to be closed and People should be encouraged to bring lunch from home and eat at their own workstations.


9. Group Tea Sessions and Smoke breaks shall be prohibited.


Disclaimer: The policies suggested here are with a good intent to help find a balance for employees (so they have enough funds to manage basic necessities, instead of facing immediate panic-stricken layoffs by employers) and to help employers float their business through a chaotic time without facing heavy financial losses while also being considerate for their employees. Also, the salary formulas are given while keeping in view the meager state of businesses (keeping in view the worldwide shipments being cancelled or halted), anything given over and above what we have suggested (if business finances allow) will be appreciable.