HC refuses to stay govt ordinance on salary cut

THIRUVANANTHAPURAM: The Kerala high court refused on Tuesday to stay an ordinance the government brought last week with an aim to make deductions in employees’ salaries as part of efforts to raise funds for fighting the coronavirus disease (Covid-19).

The court agreed to the government’s contention that it has legislative powers to bring such an ordinance during an extraordinary situation and posted the matter for further hearing on June 4. Kerala brought the ordinance on April 30, a day after a single bench of the high court stayed the government’s decision to deduct salaries of employees for six days every month for the next five months (totalling 30 days).

The move will be applicable to employees of all state-owned enterprises, public sector undertakings, quasi-government organisations and universities, among others.

Hearing a bunch of petitions questioning the ordinance, the government said its move cannot be called a salary cut, and added that it was a deferment of payment in the time of a crisis. The state reiterated its contention that this amount will be paid once the fiscal condition of the state improved.

“It is an extraordinary situation and the court cannot question the wisdom of the legislature in bringing out an ordinance...,” the high court observed. The government welcomed the decision. “We are happy. As the court pointed out, it is an extraordinary situation. Instead of a united move, some people are instigating employees,” said finance minister TM Thomas Iaasc.

The state is expected to collect ~2,000 crore through this move. Employees’ organisations owing allegiance to the opposition parties said they will approach the Supreme Court soon.

THE HC AGREES WITH GOVT’S CONTENTION THAT IT HAS LEGISLATIVE POWERS TO BRING SUCH AN ORDINANCE DURING AN EXTRAORDINARY SITUATION