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INTRODUCTION
The COVID-19 crisis declared by the World Health Organization dated 11 March 2020. Because of this Ministry of Home Affairs (MHA) issues an order dated 29th March 2020 on employment. The order named “MHA wage order“[1].
1. Why MHA issues this order?
This order has issued because COVID-19 has a disastrous impact on the life of peoples. And it has a manifest and heavy influence on all industries globally.
This order by MHA stating that employers required to pay full wages to all employees or workers.
2. MHA Wage Order Challenged in Supreme court: –
The MHA wage order challenged in the Supreme Court of India. This order has also challenged by other petitions also. but, the Supreme Court for the interim has not provided any stay. The writ petition filed by Ficus Pax Pvt. Ltd. a company in Karnataka.
Issue before the court
Whether mandating payment of full wages during lockdown is constitutionally valid or not?
Judgment of the court
The judgment came against the writ petition filed by the said company. The Supreme court repeal the order of mandating payment of full wages during the lockdown.
Three judge bench of supreme court said: –
“it is understandable in article 19 of Constitution of India that there is no obligation to pay if there is no work done”.[2]
3. Interpretation of MHA Wage Order
Before the order of MHA dated 29 March 2020, the Ministry of labour and employment had issued a series of letters. This was in the form of an announcement that employers of all industries should not cause: –
a. any reduction in wages,
b. termination of any worker or worker during the crisis of the COVID-19 crisis.
The MHA issued order numbered 40-3/2020-DM-1(A) under the charge of the NDM Act, 2005.
The word disaster defines under section 2(d) of National Disaster Management Act 2005 as: –
‘Tragedy, disaster, tragedy or bad incident in any area, whether caused by nature or man or by accident or by negligence, which results in significant life loss or human suffering, or in harm or destruction of, property, or environmental damage, and which goes beyond the coping ability of the population of the area affected.[3]‘
Hence, the government deals with the issues during a pandemic. The clause for mandatory payment of wages to workers is in clause III of the order.
When we read this order for the first time, it has stated that the said direction would apply to: –
“all employees work in industries or shops”.
And it also stated that: –
a. “will make payment of wages to all the workers who are doing their work at workplaces” and,
b. “there should not be a deduction in the wages or salary of the workers”.
Hence, the terms “wages” and “workers” used in the MHA order.
4. Meaning of wages
The term “wages” used in MHA order. The definition of wages given in section 2(gg)(rr) of the Industrial Disputes act, 1947[4]. This term wages are also defined under section 2(h) of “The Contract Labour (Regulation and Abolition) Act, 1970“[5]. The word wages used in broad sense under MHA’s order.
5. Meaning of worker
The word worker defined under section 2(1) of the factories Act, 1948. It defined as
“‘A person employed, or through any agency (including a contractor) with or without the knowledge of the principal employer, whether for payment or not, in any manufacturing process, or in the cleaning of any part of the machinery or premises used in the manufacturing process, or in any other type of work which is incidental to, or connected with, the manufacturing process or the subject of the manufacturing process.”[6]
Thus, the definition of a worker gives a distinction between who is a worker or who is not. While applying the principle of “nocturn a sociis” and while explaining the word “worker”, it would provide narrow explanation of the term.
6. Penal consequence for non-compliance of order
Due to the mandatory provision of the order, section 10 of NDM act i.e. non-compliance of the order would attract punishments. The consequences empowered to take action under section 188 of IPC, 1860.[7]Besides this, as provided for in Section 72, the said Act will also, for the time being, have an overriding effect on any other enactment.
7. Conclusion
The government’s interference between employer and employee is for the prevention of inequality. Yet in this attempt there is a possibility that companies to adhere to MHA order is not reducing the salaries of employees. This is most likely results in financial disability of the companies. It was not long after the period of lock-down period.
But, if the government gives clarification and permits reasonable reductions in salaries of employees. This could done during the restrictions on termination of non-payment of wages. Further, companies like: – small/micro companies,
which are not financially capable get financial relief by the government during the time of crisis.
This will achieve through the principle of “Pareto Optimal“. This means the greatest good for the greatest number. 2 weeks ago, MHA relaxed the restriction imposed on people from 4th May 2020. MHA says that all the employees and workers expected to return on work. If any worker presence is not there than it will be the valid reason of reduction in wages. As the lock-down extended till 17th May 2020, the MHA order still continues with its full impact. Till this time under the power exercised by MHA and NDM Act, govt. also creating a fund for the help of workers/employers. This would help workers in meeting their requirements that arise during crisis.
[1] Mha.gov.in (2020), https://www.mha.gov.in/sites/default/files/PR_MHAOrderrestrictingmovement_29032020.pdf (last visited Jun 9, 2020).
[2] (2020), https://shodhganga.inflibnet.ac.in/bitstream/10603/129409/14/14_chapter%207.pdf (last visited Jun 9, 2020).
[3] Section 2(d) in the Disaster Management Act, 2005, Indiankanoon.org (2020), https://indiankanoon.org/doc/398597/ (last visited Jun 9, 2020).
[4] Section 2(gg)(rr) in The Industrial Disputes Act, 1947, Indiankanoon.org (2020), https://indiankanoon.org/doc/1266650/ (last visited Jun 9, 2020).
[5] Section 2 in the Contract Labour (Regulation and Abolition) Act, 1970, Indiankanoon.org (2020), https://indiankanoon.org/doc/1817848/ (last visited Jun 9, 2020).
[6] Section 2 in The Factories Act, 1948, Indiankanoon.org (2020), https://indiankanoon.org/doc/527913/ (last visited Jun 9, 2020).
[7] Section 188 in The Indian Penal Code, Indiankanoon.org (2020), https://indiankanoon.org/doc/1432790/ (last visited Jun 9, 2020).

