The Ministry of Home Affairs (MHA), Government of India has issued an order providing for certain relaxations and guidelines with respect to the fourth phase of the COVID-19 lockdown, which will be in effect till May 31, 2020.
Through the order issued on May 17, the MHA has ceased all its previous orders, including the March 29 order that mandated payment of wages to employees during the lockdown period.
The government’s move is expected to bring relief to a large number of industries and companies which were unable to pay full wages to their employees.
While issuing guidelines for the lockdown’s fourth phase, Union Home Secretary Ajay Bhalla’s order on Sunday said, “Whereas, save as otherwise provided in the guidelines annexed to this order, all orders issued by National Executive Committee (NEC) under Section 10(2)(1) of the Disaster Management Act, 2005, shall cease to have effect from 18.05.2020.”
This comes after the Supreme Court in its May 15 ruling stayed the operation of the MHA circular asking private companies to pay full salaries to their employees. The apex court asked the Centre and states not to prosecute private firms, factories and others over non-payment.
The court stayed the MHA order while hearing various petitions filed by companies including Ludhiana Hand Tools Association and Ficus Pax. The petitioners had sought the quashing of the circular and expressed fear that making such payments will lead to the closure of many of the units and will ultimately cause permanent unemployment.
The March 29 order by the Ministry of Home Affairs was issued following reports of private companies cutting wages and laying off people due to reduced business and revenues during the lockdown period.
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