Amid lockdown, Govt withdraws order directing companies to pay wages

The centre has withdrawn its order on payment of full wages to the workers by companies and commercial units amid nationwide lockdown, reported PTI.

Lockdown

The move is likely to bring relief to industries and companies which were not in a position to pay full wages to their employees due to the lack of economic activity because of the pandemic.

Companies namely Swiggy, Zomato, Ola, Uber, Wework, etc have suffered major losses in their business and have to slash atleast 14 and 13% of their workforce along with pay cuts. The development has been perceived as a means to bring down the costs and to keep their business operational while people stay in their homes to curb the spread of COVID-19 pandemic.

In April, the Supreme Court had directed the authorities not to take strict action against firms that could not adhere with the union home ministry’s order of giving full wages to their workers during the COVID-19 pandemic induced lockdown.

The Association of Micro, Small and Medium Enterprises (MSMEs) in its request to the court had mentioned that the Ministry of Home Affairs had announced orders without considering the financial implications for employers. As such it is arbitrary, unconstitutional and unsustainable.

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