No Coercive Action Against Employers For Non-Payment Of Wages Till 12 June

On Thursday, the Supreme Court extended till 12 June its earlier order of 15 May that has asked the government to not take any coercive action against companies and employers for violation of Centre's 29 March circular for payment of full wages to employees for the lockdown period.

A bench of Justices Ashok Bhushan, S K Kaul and M R Shah reserved the verdict on a batch of petitions filed by various companies challenging the circular of the Ministry of Home Affairs issued on 29 March asking the employers to pay full wages to the employees during the nationwide lockdown due to the coronavirus pandemic.

In the proceedings conducted through video conferencing, the top court said there was a concern that workmen should not be left without pay, but there may be a situation where the industry may not have money to pay and hence, the balancing has to be done.

Meanwhile, the apex court asked the parties to file their written submissions in support of their claims.

The government has said that the March 29 directive was a "temporary measure to mitigate the financial hardship" of employees and workers, especially contractual and casual, during the lockdown period and the directions have been revoked by the authority with effect from 18 May.