Govt withdraws order on compulsory wage payment by firms during lockdown -Somesh Jha
Trade unions slam decision, employers welcome it, saying it was absolutely necessary especially in absence of grants from govt to industry for wage payment
In what may come as a major relief to businesses, the Union government has withdrawn its order directing employers to pay wages to workers, even with units remaining shut during lockdown.
On Sunday, the Ministry of Home Affairs (MHA) had issued a fresh set of guidelines which will be applicable from Monday. It has repealed the order dated March 29, 2020 which had talked about compulsory wage payment to workers during lockdown.
“Save as otherwise provided in the guidelines annexed to this order, all order issued by the NEC [national executive committee] under Section 10(2)(I) of the Disaster Management (DM) Act, 2005, shall cease to have effect from 18.05.2020.”
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Business Standard, 19 May, 2020, https://www.business-standard.com/article/economy-policy/govt-withdraws-order-on-compulsory-wage-payment-by-firms-during-lockdown-120051800793_1.html