38.6c New Delhi, India, Sunday, April 21, 2024

Government Withdraws Mandatory Wage Payment Order During Lockdown

By Shreya Srivastava      20 May, 2020 03:57 PM      0 Comments
Mandatory Wage Payment

It’s been more than a month since businesses are forced to halt operations due to the COVID-19 pandemic. Keeping this in mind, the Center has quashed the March 29 order that asked the employers to pay wages to the employees irrespective of their presence in the workplace.

The companies which are closed and where the workers are unable to operate during the lockdown due to the COVID-19 pandemic are no more required to pay mandatory wages to the employees.

This move by the Center will be a major relief for employers. The employers demanded that either the government offer them a wage stimulus or not mandate payment of wages during the lockdown.

Along with this, the order preventing landlords from demanding rent during the lockdown has also been withdrawn.

According to the guidelines issued by the Home Minister on Sunday i.e. 17th March 2020 for lockdown 4.0, the orders except for Six Standard Operating Procedures for People’s Movement in defined conditions have been withdrawn.

The order said, “Save as otherwise provided in the guidelines annexed to this order, all order issued by the NEC (national executive committee) under Section 10(2)(I) of the Disaster Management (DM) Act, 2005, shall cease to affect 18.05.2020”. 

The March 29 order which had mandated the payment of wages by employers had read - “ All the employers, be it in the shops and commercial establishment, shall make payment of wages of their workers, at their workplace, on the due date, without any deduction, for the period their establishment is under closure during the lockdown."

The same order also stated that it the duty of the State to take care of the necessities of an individual. The State will ensure adequate arrangements of temporary shelters and food for the poor and needy people including migrant laborers.

Some employers challenged the constitutionality of the March 29 order in the apex court. The Supreme Court had asked the Government not to take coercive action against private companies who are not paying wages during the lockdown.

Ever since the lockdown, industries and their federations have been demanding wage stimulus from the Government.

Earlier the Ministry of Labour and Employment also asked the employers not to cut salaries or let go, people.

Earlier this month, during a meeting with Labour Secretary of FICCI (Federation of Indian Chambers of Commerce and Industry), had requested a 50% wage subsidy and said that in the absence of such relief they may let go some of the workers due to business loss during the lockdown period.

Share this article:

Leave a feedback about this

Trending Judiciary
SC orders medical examination of 14-yr-old rape survivor seeking to terminate her 28-week pregnancy

Supreme Court orders medical examination of 14-year-old rape survivor seeking termination of 28-week pregnancy. Decision to be made after evaluating impact on her health.

20 April, 2024 11:00 AM


Trending Legal Insiders
Need to safeguard judiciary from unwarranted pressures: 21 ex-judges write letter to CJI

21 ex-judges write to CJI Chandrachud urging protection of judiciary from pressures undermining its integrity and autonomy.

15 April, 2024 12:17 PM
Trending Judiciary
SC notice to ED; declines early date on plea by Delhi CM Arvind Kejriwal against arrest

SC issues notice to ED, declines early hearing on Delhi CM Kejriwal's plea against arrest in liquor scam.

15 April, 2024 03:08 PM
Trending Law School
Call For Chapters: Gender-Based Violence and Religion

Calling For Book Chapters: As an editor, Dr. Amit Anand, Assistant Professor, School of Legal Studies, REVA University, Bengaluru, is inviting people to contribute to a book, entitled "Gender-Based Violence and Religion." This book is scheduled to be published by Cambridge Scholars Publishing.

15 April, 2024 04:21 PM
Trending Top Stories
Cannot stop any public rally, Bombay HC on allegation that Ram Navami processions deliberately pass through Muslim-majority areas

The Bombay High Court calls upon the Maharashtra Police to ensure that no law and order issues occur during a Ram Navami rally in a Muslim-majority area in Mumbai.

15 April, 2024 06:36 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email