Madhu.T.K
Industrial Relations And Labour Laws
Rkn61
Hr Manager

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Dear team, Is it ok if small companies pay the half monthly salary to employees because of financial issues of the companies? Please guide.
As per Central government directive, whether the company is public/private, employer need to pay full salary to its employees during Covid-19 lock down period.
The directions issued following the Disaster Management Act are mandatory directions. Though the government cannot direct the employers to pay salary to the employees during a period of lockdown, considering a fact that the the very purpose of lockdown would get defeated if we do not treat these as holidays with pay, the employers should pay salaries. True, the government has not considered the other side of the coin. Please follow the link reasons and options available.
Madhu T K: Liability of employers to pay salary during COVID 19 lockdown period
The cases filed in the Supreme Court and various High Courts challenging the government directions to pay full salary only can tell us the real situation.

A bench consisting of three judges of Supreme Court of India, justice N.V.Ramana, SK Kaul & B R Gavai refused grant any stay order & also refused to even issue notice to Central & State Govts in all Writ Petitions whereby MHA Order 29Th March 2020 & other Notifications, Circulars etc of MHA & State Govts were challenged by various petitioners.
Hence, all petitions have virtually become infructuous.

Adding to above, the Apex Court asked the Ministry to explain as to why its order should not be stayed.
A bench led by Justice NV Ramana issued notice to the Government and asked solicitor general
Tushar Mehta to file reply within two weeks.
After receipt of explanation from Government, a concrete judgement could be provided by SC.

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