NO COERCIVE ACTION AGAINST PVT FIRMS FOR NON-PAYMENT

The Supreme Court on Friday directed that no coercive action be taken against employers for failing to pay full wages to their employees during the coronavirusinduced lockdown period and said efforts should be made to “sort out” the differences between them as both the industry and labourers need each other.

The apex court also observed that the Covid-19 induced lockdown measures enforced by the Centre had "serious consequences" both on the employers and employees and if any settlement or negotiation can be entered into between them on the issue of wage payment for around 50 days then it might "restore congenial work atmosphere".

A Bench headed by Justice Ashok Bhushan passed its interim directions on a batch of pleas against the March 29 circular of Ministry of Home Affairs which had asked all employers to make payment of wages to their workers without any deduction for the period their establishments were under closure during the lockdown to contain coronavirus.

The March 29 circular was later withdrawn by the government with effect from May 18. The bench, also comprising Justices S K Kaul and M R Shah, directed that private establishment, industries and employers who are willing to enter into settlement with the employees on the issue may initiate the process of negotiation.