‘No Coercive Action Against Companies For Failing To Pay Full Wages’ Says SC 

by Sidharth Pandey 2 years ago Views 1754

‘No Coercive Action Against Companies For Failing
The Supreme Court on Friday passed an interim order barring any coercive action against companies which have failed to pay full wages to their employees during the lockdown.

A three-judge Bench comprising Justices L Nageswara Rao, S K Kaul and B R Gavai passed the order in the case of Ficus Pax Private Ltd vs Union of India. The court also gave the Ministry of Home affairs some more time to file a reply in the case.

On March 29, the central government invoking the Disaster Management Act, had directed firms to ensure full payment of wages to their employees. The petitioner in the case has contended that as no work has taken place, it is not possible for employers to make full payment and they are unable to do so due to stalled production and no cash flow.

The petitioner further adds that the orders of the Centre can lead to a situation where companies are forced into bankruptcy rendering millions into unemployment.

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