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Updated June 4th, 2020 at 17:33 IST

No action against employers for not paying full salary, orders SC; verdict on June 12

The Supreme Court passed an interim order giving relief to the employers who did not comply with the March 29 order of the MHA mandating payment of full wages.

Reported by: Akhil Oka
Supreme Court
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On Thursday, June 4, a Supreme Court bench comprising Justices Ashok Bhushan, SK Kaul, and MR Shah passed an interim order giving relief to the employers who did not comply with the March 29 order of the Ministry of Home Affairs. The MHA had instructed all establishments to pay its employees their full salary during the lockdown period. However, multiple pleas were filed in the apex court contending that it was impossible for the employers to bear the burden of the full salary of employees as establishments remained shut. The petitioners not only argued that the MHA order was a violation of the fundamental right to trade and business of the employees but also claimed that it was beyond the scope of the powers conferred under the Disaster Management Act, 2005. 

The bench reserved its order on these pleas challenging the MHA notification for June 12. Until then, no coercive action can be taken against the erring employers. Moreover, all parties have been given the liberty to file written submissions within three days. 

Read: Expecting Rise In COVID Patients In Coming Days: Centre's Affidavit In Supreme Court

Read: Supreme Court Notifies Centre On PIL Seeking Renaming Bombay HC To 'Maharashtra HC'

Arguments in the apex court

During the hearing on Thursday, Attorney General KK Venugopal stated that the MHA direction was to prevent human suffering amid the nationwide lockdown. Mentioning that the intention of the notification was to convince the workers to stay put wherever they are, he submitted that the Disaster Management Act gave wide powers to deal with disasters. However, the bench expressed reservations over the payment of 100% wages and observed that has to be negotiations with the industry and the government should play the role of the facilitator. The AG insisted that the apex court should consider the humanitarian situation due to which the order was issued. 

In its counter-affidavit filed earlier, the MHA held that financial incapacity cannot be a reason to challenge the notification. It explained that the direction was a temporary measure to mitigate financial hardship, especially of contractual and casual employees. The MHA also informed the court that its order ceased to have effect from May 18. The guidelines issued by the MHA for the fourth phase of the lockdown had removed the mention of the mandatory payment of wages order. 

Read: Supreme Court Adjourns Plea Which Sought To Officially Rename 'India' As 'Bharat'

Read: Coronavirus Live Updates: Cases In India At 216,919 & Deaths At 6,075; Over One Lakh Cured

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Published June 4th, 2020 at 17:33 IST

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