SC directs for settlement between employers and staff on full salary payment during COVID-19 lockdown

The Supreme Court on Friday directed for mutual settlement between the employers and the employees on Ministry of Home Affairs' order to pay full salary during 54 days of the lockdown, saying no industry can survive without labourers and workers.

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

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Passing a set of directions, the court continued 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 initiate the process of settlement.

It said the court's order must be circulated through Labour Commissioner for facilitating settlement process.

The court asked the Centre to file an additional affidavit and put the matter for consideration in July.

On June 4, the court reserved its order on the petitions filed by Ficus Pax Private Ltd and others, challenging the Union government's order to companies to make full payment of salaries to employees during the 54 days period of lockdown imposed to contain COVID-19 pandemic.

Notably, the March 29 order for payment of wages without any deduction was revoked on May 17.

During the hearing, the court had suggested finding a middle ground to protect the interest of crores of contractual workers and employees as well as a group of companies.