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SC Directs For Mutual Settlement Between Employers And Employees On Payment Of Salaries During Lockdown

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The Supreme Court on Friday has directed for mutual settlement between employers and employees on Ministry of Home Affairs March 29 order to pay full salary during 54 days of the lockdown.

The bench comprising Justice Ashok Bhushan, Justice Sanjay Kishan Kaul and Justice MR Shah observed that “No industry can survive without the workers. Thus employers and employee need to negotiate and settle among themselves. If they are not able to settle it among themselves, they need to approach the concerned labour authorities to sort the issues out.”

The bench has further directed that those employers whose factories continued to work, though not to full capacity, may also enter into talks as per the 1st category.

The bench while reiterating its earlier order said that no coercive action will be taken against private factory or industry owners unable to pay full wages to workers during the 54 days of lockdown.

The bench has directed the State governments to facilitate settlements between employers and employees. Further, if no settlement is reached, the employers and employees have been directed to approach the Labour Commissioner.

While adjourning the matter, the Court said that it will hear the parties in the last week of July if any issues on wages arise.

The Central Government had withdrawn it’s March 29 notification on May 17 but it had remained in force for around 50 days. The bench was hearing a batch of petitions challenging the March 29 order which directed “all the employees, be it in the Industry or in the shops and commercial establishments, shall make payment of wages of their workers, at their work places, on the due date, without any deduction, for the period their establishments are under closure during the lockdown.”

Read the Full Order Here;

Ficus-matter12June2020

-India Legal Bureau

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