Govt withdraws order of mandatory wage payment during lockdown

Government has withdrawn the order mandating employers to pay full wages to all employees even when the industrial and commercial units were shut during COVID-19 lockdown.

According to the guidelines issued on Sunday for lockdown 4.0, all orders barring six Standard Operating Procedures for people's movement in specific circumstances have been withdrawn.

“Save as otherwise provided in the guidelines annexed to this order, all order issued by the NEC (National Executive Committee] under Section 10(2)(I) of the Disaster Management (DM) Act, 2005, shall cease to have effect from 18.05.2020,” the order said.

The order on payment of wages during lockdown has not been included in the new guidelines and ceases to be in operation, much to the relief of employers. Along with this, the order barring landlords to demand rent during lockdown has also been withdrawn.

According to the order issued on March 29, employers, be it in the industry or in the shops and commercial establishments, shall make payment of wages of their workers, at their workplaces, on the due date, without any deduction, for the period their establishments are under closure during the lockdown.

The same order had also said that states will ensure adequate arrangements of temporary shelters and provision of food for the poor and needy, including migrant labourers stranded due to the lockdown.

Aggrieved employers had approached the Supreme Court against the government order on paying salary. The Supreme Court had asked the government not to take coercive action against private companies till it decides on the petition.

The Ministry of Labour and Employment had also earlier asked employers not to cut salaries or retrench people in a number of letters to private establishments.