Supreme Court: Employers and Employees to Negotiate

Gratuity can be withheld for recovery of dues: Suprme Court of India
PTI | A bench headed by justice Sanjay K Kaul held that there is no prohibition against recovering dues including penal rent -the rent with penalty for overstaying in official accommodation - from an employee’s gratuity.

The Supreme Court of India today asked employers and employees to negotiate and settle between themselves issues relating to the payment of wages amid the COVID-19 lockdown.

In the meanwhile, the Court’s earlier order directing that no coercive action be taken against employers with respect to the March 29 notification of the Ministry of Home Affairs (MHA) compelling payment of wages, will continue to operate.

“Supreme Court dilutes MHA order on full payment of salary and said that the issue should be resolved through negotiations between the employers and their employees”

The apex court has asked the government not to take any coercive steps against private employers who have not paid salaries to their employees during the lockdown. The negotiation between employees and employers regarding wage payment will be facilitated by state government labour departments, the court said.

The government has been given four more weeks to file a reply on the legality of March 29 notification that had ordered mandatory payment of wages.


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