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Corona Lockdown Whose Liability To Pay Salary
Corona Lockdown Whose Liability To Pay Salary
Intern at ubAdvocate
Email- vishakha.mahicha19@nludelhi.ac.in
The outbreak of COVID-19 is a global pandemic and on March 14, 2020, the
government of India declared COVID-19 as a notified disaster. Travel
restrictions, event cancellations, and sick and self-isolating workforces due to
the impact of COVID-19 are causing difficulties for businesses across the globe.
But what if an employee who is working as a let's say production technician in a
private factory. Due to National Lockdown, the factory remained closed
completely for n number of months.
There have been notifications from the National Disaster Authority that no
employee will be treated on leave and factory owners should pay full salary to
their employees during the lockdown. But, the factory owner showed its
inability to make the payment.
The Epidemic Diseases Act, 1897 is colonial-era legislation that is still used as
the primary law to control a mass epidemic. The act, most recently, has been
invoked by a number of Indian states to fight the COVID-19 pandemic.
Given that labour law statutes such as the Industrial Disputes Act, 1947,
Payment of Wages Act, 1937, Contract Labour Act, 1970, Inter-State Migrant
Workmen Act, 1979 to name a few govern payment of wages to
workers/employees and particularly the provisions of the Industrial Disputes
Act, 1947 which explicitly recognizes the right of an employer to lay off an
employee and reduce wages to 50% upto a period of 45 days in certain
eventualities including a natural calamity (Section 25C and Section 25M), and
after 45 days if the layoff continues, no wages is payable, it appears that the
Ministry of Labour and Employment has consciously chosen to issue an
advisory instead of resorting to a formal order/direction mandating payment of
wages during lockdown.
The lockdown ordered under the NDMA and the mandatory directions for
payment of wages are inseparable, for the lockdown divorced from the mandate
of wage payment will be nothing but the suspension of the right to life
guaranteed under Article 21. One may, therefore, say that the constitutionality
of the lockdown order hangs on the thread of the mandate of making payment of
wages during the period of lockdown.
Given the symbiotic relationship of the capital and the labour, it is time to
traverse beyond predictable conflict and evolve a synergic model for the future.