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May 15, 2020

Supreme Court Employer wont be prosecuted for Non payment of Wages during Covid-19 Lockdown

by facelesscompliance in Compliance Law, Corporate Law

Supreme Court Employer wont be prosecuted for Non payment of Wages during Covid-19 Lockdown

The Ministry of Home Affairs had on March 29 issued a circular directing all private enterprises and MSMEs to continue payment of full salaries for the duration of the lockdown. The order had also warned of legal consequences if the directions for payment of full salaries were not complied with.

Supreme Court three judges bench led by Justice L Nageshwara Rao while hearing a batch of petitions challenging the MHA notification compelling full payment of wages to workers during lockdown ordered that “no coercive action to be taken against the companies till next week.”

The Supreme Court on Friday stayed the operation of a government circular asking private companies including MSMEs to pay full salaries to their employees during the coronavirus-induced lockdown. The court also asked the Centre and states not to prosecute private firms, factories and others over non-payment till next week. The Centre had sought a week’s time to file its reply in the matter.

We are hopfeul that the decision will come in favour of Companies & Business considering No revenue earned by business during lockdown

However the trade union has shown displeasure for above decision and requested to prayed to SC to pay atleast 50% to 75% to meet basic needs

As Centre sought time to file its reply, Supreme Court said no coercive actions till next week.

This is a developing story.

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