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Ludhiana MSMEs reach SC seeking to quash MHA order directing to pay full wages

Updated: Apr 24, 2020 07:12:48am
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New Delhi, Apr 24 (KNN) Ludhiana based Hand Tools Manufacturers Association, comprising of 41 MSMEs, has knocked the Supreme Court'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 has sought to quash the Ministry of Home Affairs (MHA) order directing payment of full salaries.

The plea argued that amid lockdown when businesses have been halted following which there is zero revenue, how it is possible to pay full wages to workers.

The Association in its petition also warned that making such payments will lead to the closure of many MSME units, which in turn will cause permanent unemployment and will adversely affect the economy.

The Association also argued that hundreds of crore of unclaimed provident fund and Employees State Insurance Corporation contribution lies in banks attracting interest. Hence, the direction to private establishments to pay full wages is “completely arbitrary and unreasonable”.

As per the association’s statement, government order violates Article 14,19 and 300A of the Constitution and does not provide any clarification in respect of its applicability to workman class or to all employees of all private establishments, otherwise, this will have grave financial implications on all private establishments.

On March 29, the MHA directed “all employers” to pay wages to their workers, without any deduction, for the period of the lockdown, under Section 10(2)(I) of the Disaster Management Act and warned that noncompliance would lead to necessary action under the Act.

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