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MHA Withdraws Order Asking Companies To Pay Full Wages During Lockdown

However, state governments can make payment of wages to workers mandatory, as labour is a subject on the concurrent list.

New Delhi| The centre has withdrawn its earlier order directing corporations to pay full wages to workers, even with units remaining shut during the national lockdown.

The Home Ministry, on Sunday, had announced a fresh set of guidelines in which it has revoked the order dated March 29, 2020, which had stated compulsory wage payment to workers during the nationwide shutdown.

This comes two days after the apex court urged the Centre not to resort to any coercive action against private companies who have not paid their workers’ full wages amid the national lockdown in lines with a government order in March.

A three-judge Bench led by Justice L. Nageswara Rao had then indicated that payment of full wages, as directed by the MHA may not be viable for small and private enterprises, which themselves are trembling on the brink of bankruptcy due to the extended lockdown. Some small units may not have been able to survive a fortnight into the lockdown.

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The court observed that the March 29 order was an omnibus one and there were several issues involved that required careful reconsideration from the centre side.

The total cases in India surged to 1,01,139 including over 39,000 cured/discharged or migrated and 3,021 deaths amid lockdown to curb the spread of COVID-19.

In the past 24 hours, 134 casualties were recorded. A staggering 4,970 new cases of COVID-19 were recorded in the last 24 hours, highest so far.

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