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Full payment of salaries: SC offers relief to private companies, asks employees, employers to negotiate

Coronavirus lockdown: The order passed by a bench comprising Justices Ashok Bhushan, Sanjay Kishan Kaul and M R Shah said the companies and their employees should sit together to arrive at a settlement

twitter-logoBusinessToday.In | June 12, 2020 | Updated 12:37 IST
Full payment of salaries: SC offers relief to private companies, asks employees, employers to negotiate
Supreme Court asks companies and industries to negotiate

Supreme Court has given a major relief to private companies and asked the government not to take any coercive action against them over non-payment of full salaries to employees. It has also asked the government to file a reply on the legality of the order. The Ministry of Home Affairs had ordered private companies to pay full salaries to employees during the lockdown period.

The apex court has said that the issue should be resolved through negotiations between employees and employers. The court asked the labour departments of state governments to facilitate the dialogue between employer and employees regarding wage payment.

The order passed by a bench comprising Justices Ashok Bhushan, Sanjay Kishan Kaul and M R Shah said the companies and their employees should sit together to arrive at a settlement. Further hearing on the matter will be done in the last week of July.

Private companies challenged the government's order to pay full salaries to employees during the 54 days India was under lockdown to prevent the spread of coronavirus. The apex court had observed on June 4 that some negotiations needed to happen between employers and employees to resolve the situation.

Also read: SBI top Sensex loser after SC seeks roadmap for clearing AGR dues

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