MSMEs reach SC seeking direction to Centre to subsidise 70% wages from PM-CARES Fund, ESIC, other funds

New Delhi, Apr 28 (KNN) Agitated over the Centre's order to pay full wages to workers amid lockdown, a group of Micro Small and Medium Enterprises (MSMEs) have filed a plea in the Supreme Court (SC) seeking direction to Centre to subsidise the wages of workers to the tune of 70 per cent for the lockdown period by utilising the funds collected by the Employees' State Insurance Corporation (ESIC) or the PM-CARES Fund or through any other government fund.

“The government should be directed to subsidise the wages of the workers to the tune of 70 per cent for lockdown period by utilising the funds collected by the Employees’ State Insurance Corporation (ESIC) or the PM Cares Fund or through any other government fund/scheme,” the petition said.

The plea has also challenged the centre advisories and orders asking private employers to not sack their employees and pay them full wages during the nationwide lockdown.

The petitioners have claimed that they have already paid the wages to all workers including for the month of March.

"On one hand, the business of the petitioners has come to a standstill due to lockdown and on the other hand the petitioners are being compelled under the impugned notifications to pay for the wages to workers for the entire lockdown period. The petitioners are being further restrained from reducing their workforce especially the casual or contract or migrant workers. The petitioners are under extreme financial & mental stress because of the Impugned Notifications", the plea added.

The plea further said that the government does not have the power to impose any financial obligations on the private establishments.

"That in terms of Section 65 of DMA 2005 the National Executive Committee is empowered to requisition resources, provisions, vehicles, etc, for rescue operations and that too by Payment of Compensation in terms of Section 66 of DMA 2005. However, the ultimate onus for any compensation towards workers shall ultimately be of the government and the said liability cannot be shifted upon the employers in private establishments", said the plea.

On Aril 24th, Ludhiana based Hand Tools Manufacturers Association, comprising of 41 MSMEs, has knocked the SC's door challenging the validity of the centre’s order directing all employers to pay full wages to workers without any deduction during the lockdown period.

In its plea, the MSME association had sought to quash the Ministry of Home Affairs (MHA) order directing payment of full salaries.