Arvind Fashions, retailer of brands such as Gap, Sephora, Aeropostale and Flying Machine, has deferred 50-80 per cent of its staff salaries for April owing to reduced sales and depleting cash flow amid the lockdown forced by COVID-19. Salary payments may be impacted for a few more months until the situation improves, said people aware of the matter.
The company makes on-account payment for employees to take care of their immediate requirements. Since April is a zero sales month, it is paying the advance and will pay the balance when the situation improves and things become normal. The pandemic has had serious and far-reaching impact on the company’s business and since the start of the lockdown, it has had negligible sales across its brands and channels.
As per the recent letter by the company, employees getting a monthly salary of Rs 15,000 will be entitled to get Rs 8,000 for April while employees drawing salaries of Rs 3-5 lakh will get Rs 75,000 or 20 per cent of net pay, whichever is higher. Similarly, salaries of top management have been slashed by 80 per cent and capped at Rs 1.25 lakh for the month.