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Small businesses may not be winning, and therefore cannot pay, the higher court noted.
New Delhi:
The Supreme Court on Friday asked the government not to take coercive measures until next week against companies and employers that are unable to pay full wages to their employees during the national shutdown due to the coronavirus pandemic.
There may be small companies that are not winning and therefore cannot pay, the higher court noted.
A bank of judges LN Rao, SK Kaul and BR Gavai, upon hearing multiple requests on the subject through the videoconference, observed that the Ministry of Interior (MHA) circular of March 29, ordering companies to pay the salary Complete to workers, it was a general order and there was a more important question that needed to be answered.
The higher court issued a notice on a statement by the Hand Tool Manufacturers Association, which comprises MSMEs seeking to overturn the order asking private establishments to pay full wages to their workers during the ongoing blockade.
Attorney General Tushar Mehta, who appeared for the Center, said he had a conference on the matter and must submit a detailed response on the pleas.
The bank said that there may be small industries, which are affected due to the blockade, since they can stay for about 15 odd days, but no more, and if they cannot win, how are they going to pay their workers?
“This is a general order (March 29). There is a bigger question involved and the government has to find an answer,” the bank noted and published the matter for next week.
He added that if the government does not help these small businesses, then they will not be able to pay their workers.
Chief advocate Jamshed Cama, who appears for the association, said the companies are stopping work as they have no production orders for goods and are being prosecuted due to the government circular.
He said the government should take the hands of these companies and help them, but they cannot be prosecuted.
The bank said no coercive measures will be taken against any of these companies for failing to pay full wages to their employees until next week.
The Association for Micro, Small and Medium-sized Enterprises (MIPYME) said in its argument that the Interior Ministry had approved orders without due care and deliberation on the financial implications for employers.
Small industrial units warned that making full payments will lead to their closure, which, in turn, will cause permanent unemployment and negatively affect the economy.
They have said that this general direction for the payment of full wages is arbitrary, unconstitutional and unsustainable.
The association further argued that during this unprecedented situation, several governments around the world have taken action for the benefit of workers / employees, but the Center, without taking any action, has placed the entire burden on employers / owners to pay for the full wages.
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