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KARNATAKA EMPLOYERS’ ASSOCIATIION

Date: 01-05-2020
CIRCULAR No. 79/2020
To
All Members of the Association

BOMBAY HC DIRECTS PAYMENT OF MONTHLY GROSS WAGES

MINUS CONVEYANCE AND FOOD ALLOWANCE

The High Court of Judicature of Bombay Bench at Aurangabad has passed the following
order in Writ Petition 10569/2020 (Align Components Pvt. Ltd. Vs Union of India and
Others) wherein the petitioners have challenged the notification issued by the
Government of India, Ministry of Home Affairs dated 29/03/2020 vide powers conferred
u/s 10(2)(1) of the Disaster Management Act, 2005 in the light of COVID-19 situation.

The management contended that since they have been mandated to shut down their
manufacturing activities, they should be exempted from paying wages for the lock down
period. Instead, the management sought permission to pay 50% of the gross wages or the
minimum rates of wages prescribed under the Minimum Wages Act, whichever is higher.

The Hon’ble High Court, while taking note of the fact that a similar petition is pending
before the Supreme Court, directed the petitioner to pay the gross monthly wages to the
employees, save and except conveyance allowance and food allowance.

Significantly, the Hon’ble High Court also clarified that the Management would be at
liberty to deduct wages of employees for their absence and who are expected to report
for duties in those areas where there is permission to operate subject to the procedure
laid down in Law.

A copy of the Judgment is attached.

for KARNATAKA EMPLOYERS' ASSOCIATION
sd/-
(B C PRABHAKAR)
PRESIDENT

NO.74, 2nd FLOOR, SHANKARA ARCADE, VANIVILAS ROAD, BASAVANAGUDI

BENGALURU - 560 004
Reg. No. TU 507 / 20-3-1962
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IN THE HIGH COURT OF JUDICATURE OF BOMBAY

BENCH AT AURANGABAD

WRIT PETITION STAMP NO.10569 OF 2020

(Align Components Pvt. Ltd., and another Vs. Union of India and
others)
WITH WRIT PETITION STAMP NO.10570 OF 2020
WITH WRIT PETITION STAMP NO.10571 OF 2020
WITH WRIT PETITION STAMP NO.10572 OF 2020
WITH WRIT PETITION STAMP NO.10573 OF 2020

Mr.T.K.Prabhakaran, Advocate for the petitioners.

Mr.D.G.Nagode, Standing Counsel for Union of India, Respondent
Nos. 1 and 2.
Mr.D.R.Kale, Government Pleader for respondent Nos. 3 to 5.

( CORAM : Ravindra V.Ghuge, J.)

DATE : 30/04/2020

PER COURT :

1. This matter is heard through video conferencing. The learned

Advocate for the petitioners/Industries has no objection if this Court

takes up all these matters for adjudication. The learned

Government Pleader submits that this Court may consider these

matters.

2. In all these identical petitions, the petitioners have

challenged the notifcation issued by the Government of India,

Ministry of Home Afairs dated 29/03/2020 vide which powers

conferred u/s 10(2)(1) of the Disaster Management Act, 2005 have

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been invoked to ensure that the workers, including the migrants,

would be paid their monthly wages by the employers taking into

account the peculiar situation on account of Covid-19. It is

contended that though the Managements are willing to ofer work

to the workers and though the workers would be willing to perform

the work, restrictions have been imposed on the continuance of the

manufacturing activities so as to restrict the spread of Covid-19

and as a consequence of which, the Managements have been

mandated to reduce/shut down their manufacturing activities. In

this backdrop, though these petitioners pray for exemption from

paying monthly wages for the period of restriction of manufacturing

activities, the learned Advocate for the petitioners submits on

instructions that these petitioners are willing to pay 50% of the

gross wages or the minimum rates of wages prescribed under the

Minimum Wages Act, whichever is higher.

3. The learned counsel on the panel of the Union of India

appears on behalf of respondent Nos. 1 and 2, and the learned

Government Pleader appears on behalf of respondent Nos. 3, 4 and

5. Both seek time to take instructions.

4. I fnd that the Hon'bble Apex Court has passed an order on

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27/04/2020 in a group of matters, in Ficus Pax Private Ltd., Vs.

Union of India and others wherein a similar request by the

employers / Management of Industries, has been put forth. The

Hon'bble Apex Court has directed that the group of petitions be

listed after two weeks. No interim relief is granted.

5. I also fnd that the Kerala High Court has stayed an order

issued by the Finance Department of the Govt. of Kerala dated

23/04/2020, by which the payment of 50% salary has been

permitted and the remainder payment of 50% salary was deferred.

6. I am of the view that as the Hon'bble Apex Court is dealing

with a similar cause of action, I would not be inclined to interfere

with the impugned order and would expect the petitioners to pay

the gross monthly wages to the employees, save and except

conveyance allowance and food allowance, if being paid on month

to month basis in the cases of those workers who are not required

to report for duties.

7. The learned Advocate for the petitioners seeks liberty to add

the workers'b representative/Union/Works Committee or intimate the

workers'b representatives to come forward with an intervention

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application. The said request is accepted.

8. It is clarifed that since the State of Maharashtra has partially

lifted the lock down recently in certain industrial areas in the State

of Maharashtra, the workers would be expected to report for duties

as per the shift schedules subject to adequate protection, from

Corona Virus infections, by the employer. In the event such

workers voluntarily remain absent, the Management would be at

liberty to deduct their wages for their absence subject to the

procedure laid down in Law while initiating such action. This would

apply even to areas where there may not have been a lock down.

9. Since the learned Advocate has caused an appearance on

behalf of the respondents arrayed in the petitions, these matters

would be listed on 18/05/2020 or on the day this Court holds Court

hearing thereafter. The payment of gross wages by these

petitioners to the workers, save and except conveyance/food

allowance, shall be subject to the result of this petition.

( Ravindra V.Ghuge, J.)

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