Payment of Wages-Salary – During Period of Lockdown (Part 1)

The Hon’ble Supreme Court of India has passed the Interim Orders on 12^th June, 2020 in the Writ Petition (C) Diary No. 10983 of 2020 and others  concerning the  payments of the wages during the period of lockdown. Some of  the key  observations  of the  Hon’ble Supreme Court are as under.

1. Lockdown measures enforced by the Government of India under the Disaster Management Act, 2005, had equally adverse effect on the employers as well as on employees.
2. Various Industries, establishments were not allowed to function during the said period and those allowed to function also could not function to their capacity.
3. All industries/establishments are of different nature and of different capacity, including financial capacity. Some of the industries and establishments may bear the financial burden of payment of wages or substantial wages during the lockdown period to its workers and employees. Some of them may not be able to bear the entire burden. A balance has to be struck between them.
4. Employees although were ready to work but due to closure of industries could not work and suffered. For smooth running of industries with the participation of the workforce, it is essential that a via media be found out.
5. The obligatory orders having been issued on 29.03.2020 which has been withdrawn w.e.f. 18.05.2020, in between there has been only 50 days during which period, the statutory obligation was imposed.
6. Both Industry and Labourers need each other. No Industry or establishment can survive without employees/labourers and vice versa.
7. We are thus of the opinion that efforts should be made to sort out the differences and disputes between the workers and the employers regarding payment of wages of above 50 days and if any settlement or negotiation can be entered into between them without regard to the order dated 29.03.2020, the said steps may restore congenial work atmosphere.

In view of the above observations, the Hon’ble Supreme Court has directed the interim measures which can be availed by all the private establishment, industries, factories and workers Trade Unions/ Employees Associations.  The key points of interim measures are as under.

1. The private establishment, industries, employers may initiate a process of negotiation with their employees and enter into a settlement for payment of wages for 50 days or for any other period, when the establishment was closed due to lockdown.
2. If the employer and employees are unable to settle by themselves, submit a request to concerned labour authorities who are entrusted with the obligation under the different statute to conciliate the dispute between the parties.
3. In the event a settlement is arrived at, that may be acted upon by the employers and workers irrespective of the order dated 29.03.2020 issued by the Government of India, Ministry of Home Affairs.
4. The private establishments, industries, factories shall permit the workers/employees to work in their establishment who are willing to work which may be without prejudice to rights of the workers/employees regarding unpaid wages of above 50 days.
5. The settlement, if any, as indicated above shall be without prejudice to the rights of employers and employees which is pending adjudication in the writ petitions”. 

Thus, in view of the above Order of the Hon’ble Supreme Court of India, it is clear that the employer and employees may negotiate for amicable settlement of the dispute regarding the payment of wages during the period of lockdown. The employees cannot force the employer to accept their demand. Likewise, the employer cannot force the employees to accept their demand. If both the employer and employees unable to arrive at an amicable settlement, the remedy is given to approach the Labour Authorities, i.e. Assistant Commissioner of Labour or the Conciliation Officer of the respective region, who in turn mediates in the matter and finds out the via-media between them.