Can We Implement a "No Work, No Pay" Policy During COVID-19 Without Legal Risks?

Dear Experts,

We are a construction-based company in Bangalore with more than 140 employees in the organization. During the lockdown situation, our employees did not attend their regular duties in the month of April 2020.

No Work, No Pay Policy

Here, I would like to seek your suggestion on whether we can adopt the "No work, No pay" policy in such cases. If any employee approaches the labor department or court, what impact would it have on the organization? What are the potential legal concerns that may arise later?

Please find the attached Supreme Court statement for your reference: [Supreme Court Statement](https://www.thehindu.com/news/national/coronavirus-lockdown-explain-home-ministry-order-on-full-wages-supreme-court-tells-government/article31458249.ece)

Considering all these factors, kindly suggest the best practices for us to follow.

The government made an appeal to all employers to pay attention to the requirements of employees. There were some employers who did justice to the call of the government, while many defied the guidelines, resulting in the plight of workers in their homeland.

No Work, No Pay Policy

There is nothing wrong with adopting "No work, No pay." You should stick to your point of "No work, No pay" in case any employee approaches the labor department or court. I presume that there would be no legal action by the authorities because the Supreme Court has instructed not to prosecute for non-payment during the lockdown period. Moreover, the Ministry of Home Affairs has also withdrawn the guidelines, so there is no fear.

Kindly make the necessary adjustments as per the corrections provided. Let me know if you need further assistance.

MHA Order Update

As per paragraph 3 of the latest MHA order/guidelines, except as provided in the annexed guidelines, all earlier orders by the National Executive Council under section 10(2)(I) of the Disaster Management Act 2005 shall cease to have effect from May 18, 2020. Ideally, this would mean that the MHA order dated March 29, 2020, regarding the payment of wages for the lockdown period shall cease to have effect from May 18, 2020, unless specifically clarified or reiterated by the Government.

However, this decision will have a prospective effect while the issue of payment of wages for the lockdown period until May 17, 2020, is still sub judice before the Honorable Supreme Court.

There cannot be a definite answer even in respect of the period up to, inasmuch as the Government, strictly on legal terms, has issued only advisories and not orders. No employer could be forced to employ them, being short of reason, logic, or even legal authority. An employer cannot be found at fault in adopting 'no work, no pay'. However, the compulsions of the situation require that the employer should not be dogmatic but ensure that no employee should be denied a 'subsistence allowance' not less than living wages during the period.