The Supreme Court on Friday directed the Centre and states not to take any coercive action till July end against private companies, which have failed to pay full wages to their employees during the coronavirus-induced lockdown period. A bench of Justices Ashok Bhushan, Sanjay Kishan Kaul and M R Shah said industries and employees need each other and they should sit together to arrive at a settlement on the issue of payment of wages. The bench, which passed an order in the matter, asked the state governments to facilitate such settlement process and file its report with the labour commissioners concerned.

It also asked the Centre to file an additional affidavit within four weeks with regard to the legality of Ministry of Home Affairs- March 29 circular which had mandated payment of full wages during the lockdown period. The bench posted the petitions filed by various companies against the March 29 circular, for further hearing in last week of July. The apex court asked the Centre and state governments to circulate its order through labour departments to facilitate the settlement process.
The Ministry of Home Affairs MHA, in its March 29 circular, had asked all employers to make payment of wages to their workers without any deduction for the period their establishments were under closure during the lockdown to contain COVID-19.