NEW DELHI, June 12:
The Supreme Court today directed that no coercive action be taken against the employers for failing to pay full wages to their employees during the Coronavirus-induced lockdown period and said efforts should be made to “sort out” the differences between them as both the industry and labourers need each other.
The Apex Court also observed that the COVID-19 induced lockdown measures enforced by the Centre had “serious consequences” both on the employers and employees and if any settlement or negotiation can be entered into between them on the issue of wage payment for around 50 days then it might “restore congenial work atmosphere”.
A bench headed by Justice Ashok Bhushan passed its interim directions on a batch of pleas against the March 29 circular of Ministry of Home Affairs which had asked all employers to make payment of wages to their workers without any deduction for the period their establishments were under closure during the lockdown to contain coronavirus.
The March 29 circular was later withdrawn by the government with effect from May 18.
The bench, also comprising Justices S K Kaul and M R Shah, directed that private establishment, industries and employers who are willing to enter into settlement with the employees on the issue may initiate the process of negotiation.
It said “in some of the writ petitions, this court had already passed an order for not taking any coercive action against the employer” and “that order shall continue in all the matters.”
The apex court said if the employers and employees are unable to settle the issue by themselves then they can submit a request to the concerned labour authorities, which after receiving such request, may call the concerned employees trade union or workers association to appear on a date for negotiation, conciliation and settlement.
“In event a settlement is arrived at, that may be acted upon by the employers and workers irrespective of the order dated March 29, 2020 issued by the Government of India, Ministry of Home Affairs,” the bench said in its 28-page order.
“It cannot be disputed that both Industry and labourers need each other. No Industry or establishment can survive without employees/labourers and vice versa,” the bench said.
“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 March 29, 2020, the said steps may restore congenial work atmosphere,” it said.
While asking the State to facilitate the process of settlement, the apex court directed that those establishments which were working during lockdown period although not to their capacity can also take steps in this regard.
“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,” it said.
It said that those establishments which would proceed for settlement and negotiation shall publicise and communicate about it to workers and employees for their participation.
“The settlement, if any, as indicated above shall be without prejudice to the rights of employers and employees which is pending adjudication in these writ petitions,” the bench said.
The top court asked the Centre, states and Union Territories to circulate and publicise its order for benefit of all private establishment, employers, factories and workers or employees.
While posting the matter for further hearing in last week of July, the bench said if any settlement is entered between the employers and employees in those establishments which have filed petitions before it, then an affidavit giving details shall be filed.
“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,” it said.
It said that those establishments which would proceed for settlement and negotiation shall publicise and communicate about it to workers and employees for their participation.
“The settlement, if any, as indicated above shall be without prejudice to the rights of employers and employees which is pending adjudication in these writ petitions,” the bench said.
The top court asked the Centre, states and Union Territories to circulate and publicise its order for benefit of all private establishment, employers, factories and workers or employees.
While posting the matter for further hearing in last week of July, the bench said if any settlement is entered between the employers and employees in those establishments which have filed petitions before it, then an affidavit giving details shall be filed.
It said that the issues raised before it, included the challenge to the vires of Section 10(2)(l) of Disaster Management Act, 2005, by the parties have to be decided together and “piecemeal consideration is not warranted”.
“We thus are of the view that Union of India may file a detail counter affidavit for which the leave they have already prayed for in the common counter affidavit, within a period of four weeks,” it said.
The Apex Court observed that the lockdown measures had “equally adverse effect” on the employers as well as on employees and various establishments were not allowed to function during the period.
It said that some establishments may bear financial burden of payment of wages for lockdown period but some may not and a “balance has to be struck between these two competitive claims.”
“For smooth running of industries with the participation of the workforce, it is essential that a via media be found out,” it said.
It said that State is under obligation to ensure that there is smooth running of industrial establishment and disputes between the employers and employees are sorted out.
Prior to the March 29 circular, the Secretary (Labour & Employment) had also written to chief secretaries of states to advise employers not to terminate employees from their jobs or reduce their wages amid the challenging situation of the pandemic.
The Centre had earlier told the court that as people were migrating after the lockdown, the government came out with the circular to ensure that workers are paid to help them in staying put at work places. (PTI)
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