The Supreme Court once again retrained the Government from taking coercive action against the companies and employers who are unable to pay full wages to their employees during the nationwide lockdown due to the coronavirus pandemic.

Pronouncing its judgement on a number of petitions filed by several companies, including MSMEs, the top court asked the Government not to take any coercive action till the end of July.

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The apex court was hearing petitions challenging the Ministry of Home Affairs order issued on March 29 to make full payment to employees during the 54-day lockdown imposed to contain the Coronavirus pandemic.

The court also directed the Centre to file a detailed affidavit in the last week of July and said that negotiation between employees and employers must be facilitated by State government labour departments.

“It cannot be disputed that the industry and labourers need each other. Efforts should be made to sort out disputes regarding payment of wages for 50 days,” a bench of Justices Ashok Bhushan, Sanjay Kishan Kaul and MR Shah said while passing the orders.

The petitioners had blamed the Central government of passing orders “without due care and deliberation on the financial implications for the employers”.

On June 4, the Supreme Court had reserved its verdict on the matter and extended till June 12 its earlier order of May 15 asking the government not to take any coercive action against companies and employers for violation of Centre’s March 29 circular.

The Centre had, in an affidavit, informed the top court that it’s March 29 notification on full payment of wages to workers by their employers during the lockdown was not unconstitutional, instead, it was a measure taken to prevent the perpetration of financial crisis within the lower strata of the society, labourers and salaried employees.

The MHA said the direction for payment of wages was in the public interest and was taken by the National Executive Committee under the pertinent provisions of the Disaster Management Act. Therefore, the National Executive Committee had full competence to issue the order.

The Centre further told the court that employers claiming incapacity in paying salaries must be directed to furnish their audited balance sheets and accounts in the court.

Earlier in May, the apex court had restrained the government from taking coercive action against employers who don’t pay workers their entire salary during the lockdown period.

On May 18, the government had withdrawn its order directing companies and commercial units to pay full wages to workers even when they are not in operation.

While issuing guidelines for the lockdown’s fourth phase, Union home secretary Ajay Bhalla’s order said, “Whereas, save as otherwise provided in the guidelines annexed to this order, all orders issued by National Executive Committee (NEC) under Section 10(2)(1) of the Disaster Management Act, 2005, shall cease to have effect from 18.05.2020.”