Mumbai: In a huge relief, Supreme Court on Friday directed that no drastic action should be taken against private firms for failing to pay their employees in full during the Coronavirus-induced lockdown period until July last week.
A three-judge bench said that industries and employees need each other and they should sit together to compromise on the issue of payment of wages.
Further, the apex court bench asked the state governments to facilitate such settlement process and file their report with the concerned labor commissioners.
It directed the Center to file an additional affidavit within four weeks about the validity of the March 29 circular of the Ministry of Home Affairs, which mandated payment of full wages during the lockdown period.
The case was then posted for further hearing in the last week of July. The bench was hearing petitions filed by various companies against the March 29 circular.