No coercive action against employers for violating order on payment of full wages for lockdown: Supreme Court

Supreme Court

New Delhi: The Supreme Court extended Thursday till June 12 the operation of its May 15. The Supreme Court in the earlier order asked the government not to take any coercive action against companies and employers for violation of its March 29 circular on payment of full wages to employees for the lockdown period.

The Ministry of Home Affair (MHA), in its circular, had asked all employers to make payment of wages to their workers without any deduction for the period their establishments were under closure during the lockdown to contain COVID-19.

The Secretary (Labour & Employment) had also written to chief secretaries of states to advise employers not to terminate employees from job or reduce their wages amid the challenging situation of the pandemic.

A bench of Justices Ashok Bhushan, SK Kaul and MR Shah had expressed its concern over the MHA’s circular, saying that 100 per cent wage payment has been ordered with the direction that there would be prosecution of offending employers.

“We have reservations over this. Some discussion should be held to work out some solution for this period of time,” the bench said. It added that a balance has to be struck between wage payment for the lockdown period and protecting the industries.

“State may have to give small industries owners a hand. Negotiations need to be held industry to industry, workmen to workmen,” the bench said while reserving the verdict on batch of petitions.

The top court, had asked May 15, the government not to take any coercive action against the companies and employers who are unable to pay full wages to their employees during the nationwide lockdown due to the coronavirus pandemic.

PTI

 

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