Lawstreet Journal

SC To UOI: No Coercive Action Against Employers for Failing to Pay Employee Wages During Lockdown till Next Week [READ ORDER]

Lawstreet Journal 18 May 2020 6:36pm

Image courtesy: Lawstreet Journal Judiciary SC To UOI: No Coercive Action Against Employers for Failing to Pay Employee Wages During Lockdown till Next Week [READ ORDER]

The Supreme Court on May 15, 2020, ordered Union of India that no coercive action shall be taken against a Hand Tools Manufacturers Association (association of 52 companies in Punjab constituting sole proprietorship firms, partnership firms, and private limited companies engaged in the manufacturing and distribution of the hand tools) for failing to comply with the Ministry of Home Affairs (MHA) notification which had compelled employers to pay wages to workers during the COVID-19 lockdown. 

The order to this effect was passed by the Bench headed by Justice L Nageswara Rao and comprising of Justices Sanjay Kishan Kaul and BR Gavai when they took up a batch of petitions seeking to quash the government notification, which had notified that if employers didn’t comply with it, criminal prosecution would be initiated against them.  

As a matter of urgency, the petitioner association had filed a writ petition under Article 32 of the Constitution of India seeking an appropriate writ for setting aside or quashing of Government Order dated March 29, 2020, (mainly clause iii), issued by Ministry of Home Affairs, Government of India, only to the limited extent of compelling the Petitioner to pay full salary to all its staff, workers, contract workers, casual workers during the period of lockdown, when its establishments/shops/factories are not operational. 

They had also contended that it will have serious financial repercussions on the Petitioner, as failure to comply with the said Government Orders, the Petitioner will be liable to face necessary actions as contemplated under Disaster Management Act, 2005.

It was further… Continue Reading...

Tagged: Lockdown  
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