Supreme Court gives relief to Employers, says Centre cannot coerce to pay full Wages and issued Interim Directions

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On Friday, in a breather for private firms, the Apex Court directed that no coercive action should be taken till July last week against employers, private companies and factories etc for failing to pay full wages to their employees during the coronavirus-induced lockdown period.

The 3-Judge bench were of the opinion that industries & employees need each other & they should sit together to arrive at a settlement on the issue of payment of wages. 

Further, the Supreme Court bench also asked the State Govts to facilitate such settlement process & file its report with the labour commissioners concerned.

It also directed the Centre to file an additional affidavit within 4 weeks with regard to the legality of Ministry of Home Affairs’ March 29 circular which had mandated payment of full wages during the lockdown period.

The matter was then posted for further hearing in the last week of July. The bench was hearing the petitions filed by various companies against the Centre’s March 29 circular.

Supreme Court passed the following interim measures which can be availed by all the private establishment, industries, factories and workers Trade Unions/ Employees Associations etc. which may be facilitated by the State Authorities: –

  1. The private establishment, industries, employers who are willing to enter into negotiation and settlement with the workers/employees regarding payment of wages for 50 days or for any other period as applicable in any particular State during which their industrial establishment was closed down due to lockdown, may initiate a process of negotiation with their employees organization and enter into a settlement with them and if they are unable to settle by themselves submit a request to concerned labour authorities who are entrusted with the obligation under the different statute to conciliate the dispute between the parties who on receiving such request, may call the concerned Employees Trade Union/workers Association/ workers to appear on a date for negotiation, conciliation and settlement. In event a settlement is arrived at, that may be acted upon by the employers and workers irrespective of the order dated 29.03.2020 issued by the Government of India, Ministry of Home Affairs.
  2.  Those employers’ establishments, industries, factories which were working during the lockdown period although not to their capacity can also take steps as indicated in direction No.(i).
  3. The private establishments, industries, factories shall permit the workers/employees to work in their establishment who are willing to work which may be without prejudice to rights of the workers/employees regarding unpaid wages of above 50 days. The private establishments, factories who proceed to take steps as per directions (i) and (ii) shall publicise and communicate about their such steps to workers and employees for their response/participation. The settlement, if any, as indicated above shall be without prejudice to the rights of employers and employees which is pending adjudication in these writ petitions.
  4.  The Central Government, all the States/UTs through their Ministry of Labour shall circulate 28 and publicise this order for the benefit of all private establishment, employers, factories and workers/employees.

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Read Order here:

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