No action against firms for not paying wages during lockdown

The Supreme Court has said that no action can be taken until the end of July against private employers who have not paid salaries to workers during the coronavirus lockdown. This has come as a mjor relief for private employers.

The court said that all states must ensure negotiations are held between employees and employers over the payment of salaries and file reports with the labour commissioners concerned.

The court has given the Centre four more weeks to file a reply on the legality of a notification that had ordered mandatory payment of full wages during the lockdown. The Union Home Ministry, in its circular in March, 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.

It cannot be disputed that the industry and labourers need each other. Efforts should be made to sort out disputes regarding payment of wages for 50 days. – Supreme Court bench

The top court bench posted the petitions filed by 18 companies for further hearing in last week of July. The petitioners had blamed the government of passing such orders without taking into account the financial implications for the employers.

The Centre had argued that the Home Ministry notification was to reduce the financial hardships of crores of workers and that it had been withdrawn, with the employers having to pay wages for only 54 days.