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“No Coercive Action Against Pvt Companies Not Paying Full Salaries To Employees”: Supreme Court

On May 15, the Supreme Court had issued an interim order. It said that there should be no action against companies that do not obey the orders of the Home Ministry.

 

New Delhi| The Supreme Court today ruled that there will be no coercive action against private companies If they fail to pay their workers a full salary during the lockdown. Hearing the matter, it said that there will be no strict action against the companies. The court has insisted on mutually resolving the dispute among the companies and workers. The next hearing, in this case, will be held in the last week of July. The date of hearing is not yet set.

The Home Ministry issued an order on 29th March. The order directed the private companies to pay their employees salaries for the period of lockdown in full on the due date. The Home Ministry order was for 54 days of lockdown.

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Some private companies, including the Hand Tools Manufacturers Association and Jute Mills Association, had petitioned the Supreme Court against the Home Ministry order. On May 15, the Supreme Court had heard and issued an interim order. It said that there should be no action against companies that do not obey the orders of the Home Ministry.

A bench of Justices Ashok Bhushan, Justice Sanjay Krishna Kaul and Justice MR Shah held the hearing on Friday. The bench said that no strict action should be taken against companies who failed to pay full salary during the lockdown.

What Did The Supreme Court Say?

  • If the dispute between the companies and the workers is not resolved, the Labour Department will have to help with the settlement.
  • State governments will also have to help with the settlement and submit its report to the Labor Commissioner.
  • The central and state governments should ignore this issue in pieces. They should get a circular about the settlement through the Labour Department.
  • The central government should submit an affidavit in 4 weeks and file its reply on the order of 29 March of the Home Ministry.

 

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