‘Lockdown wages can be negotiated’

NEW DELHI: Private establishments, industries and employers are at liberty to negotiate with employees and arrive at a settlement regarding payment of wages for 50 days or any other period during which their establishments were closed due to the lockdown, the Supreme Court held on Friday.

Such settlement arrived at by the employers and employees will be valid and can be enforced under law despite the March 29 notification of the ministry of home affairs (MHA) mandating payment of full wages to employees for the period during which the establishment was closed, a three-judge bench headed by justice Ashok Bhushan clarified.

“Both industry and labourers need each other. No Industry or establishment can survive without employees/ labourers and vice versa. We are thus of the opinion that efforts should be made to sort out the differences and disputes between the workers and the employers regarding payment of wages and if any settlement or negotiation can be entered into between them, it may restore a congenial work atmosphere,” the court said.

Various private firms and associations had approached the Supreme Court challenging the March 29 notification by the MHA stating that the obligation to pay employees arises only when work is actually done.

The notification issued by the MHA on March 29 stated that employers must pay wages in full to all their employees even if their establishments are closed due to the lockdown. The notification was later withdrawn by the Centre on May 18, thus remaining in force for 50 days.

The Supreme Court in its order passed on Friday did not decide the validity of the notification itself, instead posting the case for a detailed hearing on that aspect in the last week of July.

The central government through attorney general KK Venugopal, on June 4 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.”

However, the petitioners countered that by arguing the workers will not come to the negotiating table as long as the government notification is in operation.

The court said employers that were working during the lockdown, though not to their full capacity, could resort to negotiation with their employees.