SC tells Centre not to take coercive action against companies unable to pay full salary

The Supreme Court on Friday told the Centre not to take any coercive actions against the companies which expressed their inability to ensure payment of full salary, and wages to employees, daily wagers, and migrant workers.

A bench of Justices L Nageswara Rao, Sanjay Kishan Kaul and B R Gavai asked Solicitor General Tushar Mehta to file a response to a batch of the PILs highlighting the plight of the private companies.

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One of the council, representing the petitioners, contended that essential industries have been permitted to work. But if workmen were not coming voluntarily, we should not be forced to pay them.

We need clarification on this issue as Ministry of Home Affairs issued directions on March 29 against any salary cut.

The bench, however, orally said if a worker was in a containment zone, he would not be allowed to come. In such cases, how will you not pay them, the bench asked?

Solicitor General Tushar Mehta said the notification for payment was issued as a welfare measure. The workers may be under the containment zones. The issue will have to be considered, he said.

The bench then issued notice to the Union government on separate petitions filed by Ludhiana Hand Tools Association, Ficus Pax Private Limited, Rajasthan Steel Chambers, Instruments and Chemicals Private Limited and Others, NCR Chambers of Commerce and Industry, Teknomin Construction Limited, and Garments Exports Manufacturing Association and others.

The court put the matter for further consideration next week.