SC directs for settlement between employers and employees on order to make full salary during lockdown

The Supreme Court on Friday (June 12) directed for settlement between the employers and the employees' organisations on Ministry of Home Affairs' order to pay full salary during 50 days of the lockdown, saying no industry can survive without labourers and workers.

"Efforts should be made to sort out the differences and disputes between the workers and the employers...such steps may restore congenial work atmosphere," a bench of Justices Ashok Bhushan, Sanjay Kishan Kaul and M R Shah said.

If the issue is not settled, then the labour authorities should be approached, the bench said.

The court said the employers whose factories continued to work, though not in full capacity, may also enter into talks.

"The lockdown measures had an equally adverse effect on the employers as well as on employees. It had serious consequences on both of them," the bench said.

The court noted that some of the industries and establishments may bear the financial burden of payment of wages, while some of them may not be.

"A balance has to be struck between these two competing claims. The workers and employees although were ready to work but due to closure of industries could not work and suffered. For the smooth running of industries with the participation of the workforce, it is essential that a via media be found out," the bench said.

Passing a set of directions, the court extended operation of its order that no coercive action should be taken against the factory owners, MSMEs and companies during this period of talks and mediation.

The court directed the States to facilitate the process of settlement and mediation.

The court asked the Centre to file a comprehensive response to a batch of petitions filed by Ficus Pax Private Ltd and others, challenging the validity of the March 29 order for full payment of salary issued under the Disaster Management Act, and put the matter for consideration in the last week of July.

Notably, the March 29 order for payment of wages without any deduction was revoked on May 17.