No action on firms who fail to pay full wages to employees: SC
New Delhi : The Supreme Court on Friday said that no action will be taken against the companies who fail to pay full wages to their employees for the period of national lockdown.
Taking up a petition filed by Hand Tools Manufactures Association on the, the bench of Justices L N Rao, S K Kaul and B R Gavai remarked that the March 29 circular of the Ministry of Home Affairs (MHA), directing companies to make payment of full wages to workers, was an omnibus order and there was a larger question involved which needed to be answered.
Justice Kaul mentioned that there are small companies which are not earning and which is why they may not be able to pay the wages. Issuing notice to the Centre, the bench said these units will not be able to pay their workers unless the government extends a helping hand.
A lawyer representing the government sought time from the court to file the response on the matter.
The plea urged the court to quash the circular asking private establishments to pay full wages to their workers for the lockdown period.
Senior advocate Jamshed Cama, appearing for the petitioner, said companies are going out of work as they do not have enough orders.