Supreme Court of India, on Friday, issues interim measures which can be availed by all the private establishment, industries, factories, and workers Trade Unions/ Employees Associations, etc. which may be facilitated by the State Authorities for Payment of Wages during the lockdown.
Factual Background
Writ Petitions have been filed by different employers, employers’ associations questioning the orders issued under Disaster Management Act, 2005 and other consequential orders issued by different States where directions have been issued that all the employers be it in the industries or in the shops, commercial establishment, shall make payment of wages of their workers, at their workplace, on the due date, without any deduction, for the period their establishments are under closure during the lockdown.
Petitioner and respondent contentions
The petitioner’s case is that notifications are arbitrary, illegal, irrational, and unreasonable and contrary to the provisions of law including Article 14, Article 19(1)(g). Notifications are also contrary to the principles of Equal work Equal Pay and also No work No pay, for it does not differentiate between the workers who are working during the lockdown period in an establishment such as the petitioner who has been permitted to operate during the lockdown period and the workers who had not worked at all.
Respondent stated that right to wages is a preexisting right which flows inter alia from the contract of employment as well as broader constitutional and statutory scheme flowing from Article 14 and 21 of the Constitution and encompassing Payment of wages Act, Minimum Wages ActThe Contract labor (Regulation and abolition) Act and the Industrial Disputes Act, 1947.
Court Decision
The Supreme Court of India directed following interim measures which can be availed by all the private establishment, industries, factories, and workers Trade Unions/ Employees Associations, etc. which may be facilitated by the State Authorities: -
- The private establishment, industries, employers who are willing to enter into negotiation and settlement with the workers/employees regarding payment of wages for 50 days or for any other period as applicable in any particular State during which their industrial establishment was closed down due to lockdown, may initiate a process of negotiation with their employee's organization and enter into a settlement with them and if they are unable to settle by themselves submit a request to concerned labor authorities who are entrusted with the obligation under the different statute to conciliate the dispute between the parties who on receiving such request, may call the concerned Employees Trade Union/workers Association/ workers to appear on a date for negotiation, conciliation, and settlement.
- Those employers’ establishments, industries, factories which were working during the lockdown period although not to their capacity can also take steps as indicated in direction No.(i)
- 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. The private establishments, factories who proceed to take steps as per directions (i) and (ii) shall publicize and communicate about their such steps to workers and employees for their response/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.
Court further stated that if any settlement is entered between the employers and employees in the establishments, an affidavit giving details shall be filed by the next date of hearing.
CASE DETAILS
Case before: Supreme Court of India
Case Title: FICUS PAX PRIVATE LTD. & ORS. v. UNION OF INDIA & ORS.
Coram: Justice Ashok Bhushan, Justice Sanjay Kishan Kaul Justice M.R.Shah
Decided on: 12-06-2020
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