Unpaid Leave by Employer

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asked on Mar 27, 2015 at 15:10
A newly set up company had employed several staff; however it foresees that its operations will be delayed. Can the company temporarily close its operation and asked the staff to go for unpaid leave until further notice.

What should the company do for the above situation?

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answered on Mar 28, 2015 at 20:40
Hi there

There are 2 issues here, one legal and one practical.

Legally once you have employed staffs, you can't force them to go on unpaid leave. You got to pay them their wages.

But if some of the staffs agree to go on unpaid leave, then you would have a practical problem. There is no guarantee that they would not find some other job and by the time your operations resume, you might not be able to get this staffs to work for your company any more.
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