Lockdown Wages: Employers And Employees To Negotiate Settlement
Channel: MentorTalk
Date: 2020-06-14

In a massive respite and relief to the private companies and establishments, the Supreme Court has passed an order on 12th June in a batch of writ petitions, where it has extended and continued its earlier order directing that no coercive action can be taken against employers who fail to pay full wages to employees during the lockdown that was implemented to control the spread of covid-19. The Supreme Court proposed for negotiations between the establishments and workers on the full payment of wages, notwithstanding the direction issued by the Ministry of Home Affairs. Let me share more details with you on the other side of the break, about what the Supreme Court said about negotiations.  
#Lockdown #Wages #HemantBatra #MentorTalk #SupremeCourt #MHA


The Ministry of Home Affairs on March 29 had issued a directive that: "All the employers, be it in the Industry or in the shops and commercial establishments, shall make payment of wages of their workers, at their workplaces, on the due date, without any deduction, for the period their establishments are under closure during the lockdown". The MHA direction was in force for 54 days, before it was withdrawn with effect from May 18.

The Supreme Court disregarded the MHA order and observed that It cannot be disputed that the lockdown measures enforced by the Government of India under the Disaster Management Act, 2005, had an equally adverse effect on the employers as well as on employees. Various Industries, establishments were not allowed to function during the said period and those allowed to function also could not function to their capacity. Some of the industries and establishments may bear the financial burden of payment of wages or substantial wages during the lockdown period to its workers and employees. Some of them may not be able to bear the entire burden. A balance has to be struck between these two competing claims. Said the Court.

The Supreme Court concluded that It cannot be disputed that both Industry and Labourers need each other. No Industry or establishment can survive without employees/labourers and vice versa. Hence, efforts should be made to sort out the differences and disputes between the workers and the employers regarding payment of wages of above 50 days and if any settlement or negotiation can be entered into between them restoring congenial work atmosphere. 

The Court in the interim has directed that the private establishment, industries, employers who are willing to enter into negotiation and settlement with the workers/employees regarding payment of wages for 50 days or for any other period as the case may be, may initiate a process of negotiation with their employee's organization and enter into a settlement with them and if they are unable to settle by themselves submit a request to concerned labour authorities. In the event a settlement is arrived at, that may be acted upon by the employers and workers irrespective of the order dated 29.03.2020 issued by the Government of India, Ministry of Home Affairs. The Court clarified that any settlement shall be without prejudice to the rights of employers and employees which is pending adjudication in these writ petitions. Centre and states and UTs have been directed to circulate court order through labour departments to facilitate settlements.

The Court did ask the private establishments, industries, factories to permit the workers/employees to work in their establishment who are willing to work which may be without prejudice to rights of the workers/employees regarding unpaid wages of above 50 days. 

Let us hope better sense will prevail and mediation, negotiations and conciliation will resolve the bickering.