SC directs pvt employers and employees to negotiate on salary payment for lockdown

The Supreme Court today pronounced its order on petitions challenging the March 29 MHA order, which had made it compulsory for all private firms to pay their employees full and complete wages during the nationwide lockdown.

Several companies had approached the Supreme Court challenging the MHA order, stating that the industries were facing huge losses during the lockdown. In this regard, the employers had asked the Supreme Court to implement the “no work, no pay” rule or direct the Centre to use the ESI funds for payments during this time.

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The Supreme Court today stated that State governments have to facilitate settlements between workers and employers for wages during the 54-day lockdown period. The apex court ordered the private firms to initiate negotiations with their employees on the issue of payment and decide at the earliest what resolution can be reached.

The Supreme Court also asked the employers and the employees to approach the labour commissioners for resolution of any disputes between the two.

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Along with this, the Supreme Court stated that the matter has not been disposed off yet. The matter has been kept for hearing in the last week of July, while the Centre has been directed to file a detailed response to the petitions by then.

Justice Bhushan while pronouncing the order stated - “No industry can survive without the workers. Thus employers and employee need to negotiate and settle among themselves. If they are not able to settle it among themselves, they need to approach the concerned labour authorities to sort the issues out”.

The Supreme Court also clarified in its order that those employers or industries which were working during lockdown but not to their full capacity can also enter into negotiations with their employees. Further, the employees should be allowed to come back to work without prejudice to the ongoing negotiations. The matter will now be heard in the last week of July.

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