The Indian government has withdrawn its order issued in March directing employers to pay wages to workers, even with units remaining closed during lockdown. The ministry of home affairs (MHA) issued a fresh set of guidelines on May 17 that became applicable beginning yesterday. The annexure attached to the order excludes the March 29 order.
The annexure mentions six sets of standard operating procedures, mostly related to movement of persons, that will continue to remain in force, according to Indian media reports.The Indian government has withdrawn its order issued in March directing employers to pay wages to workers, even with units remaining closed during lockdown. The ministry of home affairs (MHA) issued a fresh set of guidelines on May 17 that became applicable beginning yesterday. The annexure attached to the order excludes the March 29 order.#
“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,” MHA said.
The March 29 MHA order under Section 10(2)(I) of the Disaster Management Act asking all employers to pay wages to workers on due date without any deduction even if the establishment was closed during the lockdown period.
The industry had petitioned the government to repeal its earlier order on compulsory wage payment as they were facing cash crunch. Some industrial bodies had also asked the government to foot the wage bills of companies through payment of grants but it was not agreed to due to fiscal constraints.
The constitutional validity of the government’s order on wages was challenged by several companies who had moved the Supreme Court.
Last week, the apex court asked the government not to take any coercive action against private companies who were unable to pay wages to workers. The court was to hear the petition this week. Employers have welcomed the new step, terming it an absolutely necessity, especially in the absence of grants from the government to the industry towards wage payment.
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