Employers and Workers can negotiate regarding payment of wages and reach a settlement: SC

New Delhi, June 13 (KNN) The Supreme Court has ruled that private establishments, industries and employers are at liberty to negotiate with employees and arrive at a settlement regarding payment of wages for 50 days or any other period during which their establishments were closed due to the lockdown.

Various industries and associations had approached the Supreme Court challenging the March 29 notification by the MHA stating that the obligation to pay employees arises only when work is actually done.

A three-judge bench headed by justice Ashok Bhushan clarified that such settlement arrived at by the employers and employees will be valid and can be enforced under law despite the March 29 notification of the ministry of home affairs (MHA) mandating payment of full wages to employees for the period during which the establishment was closed.

The notification issued by the MHA on March 29 stated that employers must pay wages in full to all their employees even if their establishments are closed due to the lockdown.

“All the employers, be it in the industry or in the shops and commercial establishment, shall make payment of wages of their workers, at their work places on due date, without any deduction for the period their establishments are under closure during the lockdown,” clause (iii) of the MHA notification said.

“Both industry and labourers need each other. No Industry or establishment can survive without employees/ labourers and vice versa. We are thus of the opinion that efforts should be made to sort out the differences and disputes between the workers and the employers regarding payment of wages and if any settlement or negotiation can be entered into between them, it may restore a congenial work atmosphere,” the Supreme Court said.

The earlier notification of MHA was later withdrawn by the Centre on May 18, thus remaining in force for 50 days.