NEW DELHI: In a huge relief to private companies and industries, the Supreme Court on Friday restrained the Government from taking any coercive action against them for failing to pay wages to workers during COVID-19 lockdown.
A three-judge Bench, headed by Justice Ashok Bhushan, said the issue of non-payment of wages during the lockdown has to be settled through negotiations between employees and employers. The negotiations have to be facilitated by the state governments’ labour departments, it added.
The Bench had passed a similar order with regard to some companies earlier. Now it has become a general order.
The Bench which also included Justice SK Kaul and Justice MR Shah said it can’t be disputed that the industry and workers need each other, and therefore, efforts should be made to sort out the differences regarding payment of wages for the 54-day lockdown during which the MHA notification was in force.
The Centre had told the court during the hearing that the said MHA notification had been withdrawn last month.
While ordering no coercive action against private establishments till the end of July, it posted the matter for further hearing in the last week of July.
Those industries or employers who were working during the lockdown but not to their full capacity can also enter negotiations, it said.
It said employees should be allowed to report back to work without any prejudice to the negotiations.
The Bench gave four additional weeks to the Centre to file its response to petitions challenging the validity of the March 29 MHA notification that had ordered mandatory payment of wages during the COVID-19 lockdown.
Several private companies have challenged the MHA’s notification on the grounds that they can’t be forced to pay full wages during the lockdown ordered by the government.
The petitioners, including Karnataka-based company Ficus Pax and Ludhiana Hand Tools Manufacturer Association, have challenged the validity of Section 10(2)(i) of the Disaster Management Act, 2005.
The provisions of this Act cannot “impinge upon express provisions of the Industrial Disputes Act, 1947 and take away the right to layoff workmen during times of natural calamity,” they said.
Terming the MHA order under the Disaster Management Act, 2005 as arbitrary, they said the order violated the private companies’ right to carry on any occupation, trade or business guaranteed under Articles 19(1)(g) of the Constitution.