Onus of paying full wage to staff on the employer: Govt

nNEW DELHI: The Centre is committed to restarting industries and reviving the economy, the central government’s top law officer, attorney general (AG) KK Venugopal, told the Supreme Court on Thursday during the hearing of a case challenging the home ministry’s March 29 directive to employers to pay workers in full for the lockdown period.

The directive had been intended to alleviate human suffering and will not come in the way of employers and employees negotiating the payment terms, the AG said.

“Government of India is interested in economy restarting, industries restarting. It is for employers to negotiate with employees as to how much wage could be paid for lockdown period, we will not interfere,” Venugopal said.

Industries, traders and their associations, which are the petitioners before the apex court in the case, countered by arguing that workers will not come to the negotiating table as long as the government notification mandating payment of full wages is in operation.

“With the March 29 notification in place, no negotiation will be possible since workers will not come to negotiating table. We are as much citizens as the workers are,” senior counsel KV Viswanathan, who was appearing for the company B4S Solution Ltd, told the bench headed by justice Ashok Bhushan. The bench also seemed to share the concerns of the employers, stating that mandating payment of full wages during the lockdown could have an adverse impact on the industries.

“The notification directs payment of 100% of salaries. It could have been around 50 to 75%. Do you have the power to ask them to pay 100%,” justice Bhushan asked. The bench, which also comprised justices Sanjay Kishan Kaul and MR Shah, reserved its verdict, which will be delivered on June 12. The court granted interim protection to employers directing that no coercive action be taken against them until the court delivers verdict.

The contentious notification issued by the ministry of home affairs on March 29 said, “All the employers, be it in the industry or in the shops and commercial establishment, shall make payment of wages of their workers, at their work places on due date, without any deduction for the period their establishments are under closure during the lockdown”.

Companies and associations approached the court, stating that the obligation to pay employees arises only when work is done. “An employer and employee have reciprocal promises whereby the right of an employee to demand salary is reciprocal to performance of work by such employee. The employer has a right to not pay if no work is done,” the plea by Hand Tool Manufacturers Association, an association of around 52 firms based out of Punjab, said.

Senior counsel Indira Jaising, who appeared for Angmenhanti Kashtakari Sangarsh Samiti, an umbrella coalition of informal workers, said,“if an authority prevents me from going to work, then it should ensure that I am protected. We have honoured the lockdown.”