MHA Order On Full Wages: No Coercive Action Against Employers, Says Supreme Court

New Delhi: The Supreme Court on Thursday issued an interim order stating that no coercive action should be initiated against employers for non-compliance of the March 29 order of the Ministry of Home Affairs (MHA) for full payment of wages.

The Apex Court Bench comprising Justices Ashok Bhushan, SK Kaul and MR Shah stated that it had reservations over the viability of the MHA order that hundred per cent wages should be paid when industries and establishments were forced to shut down as part of the nationwide lockdown. The Supreme Court bench also observed that the government invoked the National Disaster Management Act and not the Industrial Disputes Act.

The Bench pointed out that while it appreciated the fact that the workforce should be paid, the capacity of the industry to pay must also be taken into account in view of the shutdown.

The apex court bench further observed that the government should play the role of facilitator in negotiations with the industry. The Bench sought a practical solution from the Centre.

The Attorney-General submitted to the apex court that the workers who are migrating in large numbers would stay back if they were continued to be paid. The AG also said that the underlying intention behind the direction given by the MHA was to prevent human suffering. The AG submitted to the apex court that it should factor the humanitarian crisis on account of which the MHA order was issued.