Supreme Court stays order issued by the Centre to companies to pay full salary during the lockdown

“For how long the companies should pay the salary ?” – Questions Supreme Court

New Delhi – The order issued by the Central Government to companies to pay full salary to employees was stayed by the Supreme Court. “No action should be taken against companies unable to pay full salary,” ordered the Supreme Court.

Fix Packs Pvt Ltd, a company in Karnataka challenged the Central Government order and filed a case in the Supreme Court. On hearing the case, the Supreme Court issued the order.

The Supreme Court stated, “Lockdown has crippled small industries. As per the version of industries, they can pay for 15 days without income. Afterwards, they will not be able to pay. If the production takes place, companies are bound to pay; however, they cannot be coerced to pay, if there is no production. How many days the Central Government expect companies to pay ?’ Advocate General requested for time to present the Government response.

The petition opposed the order issued by the Home Ministry. The company stated that the Home Ministry’s order violates Article 14 and 19(1)(G) of the Constitution. The Central Government decision is an infringement of the doctrine ‘Equal work, equal pay and no work, no pay.’ There can be no compromise with this principle, even in the lockdown period.