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Order for full payment of salaries by pvt firms for lockdown period withdrawn

The MHA had issued the contentious order mandating payment of salaries to industry workers without deduction for the lockdown period and some employers had challenged it in the Supreme Court.

NEW DELHI, May 23: Following a restraining order of the apex court last week, the Ministry of Home Affairs on Monday withdrew its earlier notification that directed employers to pay the employees their full salaries for the period of the coronavirus lockdown.

The Supreme Court had last week restrained the Government from taking coercive action againt companies not paying the wages and salaries of employees for the lockdown period.

A group of companies had challenged the MHA order saying it was "arbitrary, illegal, irrational, unreasonable and contrary to the provisions of law including Article 14 and Article 19 (1) (g) of the Constitution of India," and could turn companies into insolvency.

The MHA had issued the order on March 29 mandating payment of salaries to industry workers without deduction. The order had said, "All the employers, be it in the industry or in the shops and commercial establishments shall make payment of wages of their workers at their work places, on the due date, without any deduction, for the period their establishments are under closure during the lockdown."





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