Order on compulsory wage payment by firms during lockdown withdrawn
Published On: Monday, May 18, 2020 | By: Team KnowMyStock
The Union government has withdrawn its order directing employers to pay wages to workers, even with units remaining shut during the lockdown on 17th MAy 2020. The Ministry of Home Affairs (MHA) had issued a fresh set of guidelines which will be applicable from 18yh May. It has repealed the order dated March 29, 2020, which had talked about compulsory wage payment to workers during the lockdown. “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 have effect from 18.05.2020.”
Over the past few days, the industry had petitioned the government to withdraw its order on compulsory wage payment as they were themselves facing cash crunch issues. Some industrial bodies had also asked the government to foot the wage bills of companies through payment of grants but it was not agreed to due to fiscal constraints.
The MHA had on March 29 issued an order under Section 10(2)(I) of the DM Act asking all employers to pay wages to workers on due date without any deduction even if the establishment was closed during the lockdown period.
“All employers, be it in the industry or in the shops and commercial establishments, shall make payment of wages of their workers, at their workplaces, on the due date, without any deduction, for the period their establishments are under closure during the lockdown,” the March 29 order had said.
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