Home Legal NewsRecent Development Relief for Employees Against Lay-Off, Termination, Pay Cuts from Private Entities: Plea in Supreme Court [Read Petition]

Relief for Employees Against Lay-Off, Termination, Pay Cuts from Private Entities: Plea in Supreme Court [Read Petition]

by Shreya
Supreme Court (SC)

Advocates Rajesh Inamdar, Aishwarya Rai B   and National Information Technology Sena, a Union working for welfare of IT/ITES/BPO/KPO employees in Pune, has filed a plea in Supreme Court regarding the March 20 Advisory of the Labour and Employment Ministry, the March 29 GO of the Central government and the various state government resolutions, so far as they relate to the directions to the employers of both the private and public companies to not lay off/terminate employees or cut their salaries, in the wake the COVID lockdown, be implemented.

The petitioner clarified,

“The present petition is not to seek a direction from this Hon’ble Court to burden employers. However, it is submitted that a balance needs to be drawn between the rights of the employers and those of the employees, the latter being the more disadvantaged class .The present petition is being preferred only to ensure that in the unprecedented situation, whereby the functioning of whole country has virtually come to a standstill, does not result in an unmitigated disaster in the loss of jobs in the public/private sectors, thereby forcing a huge human cost on the Country. The Country which was already trying to recover from the economic crisis and unemployment issues had to be brought to complete blockade due to rapid spread of the COVID-19 wherein the entire nation was put into lockdown due to which the issues which were already existing will be worsened”

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It was submitted that various private Companies in the country have initiated a drive of illegal mass termination of the employees, withholding of the salaries or illegal deduction of salaries in complete breach and violation of the directions/advisories, taking advantage of the deadlock situation which has emerged in the Country. It has also been submitted that no procedure like notice period, intimation to government authorities, payment of retrenchment compensation, payment of gratuity, Leave encashment, etc. has been undertaken by the Companies.

It has been pointed that the Government’s order directed all commercial establishments, private offices, industrial establishments and factories to remain closed through the lockdown. All these employees who were terminated over a phone call/email in the midst of the lockdown situation have no option even to protest or seek explanations. Immediately thereafter in almost all cases access to company emails and other platforms were barred.

Salaries have also been withheld and deducted without any basis. It was argued “It is pertinent to indicate that as per the statistic presented Centre for Monitoring Indian Economy, (CMIE) as on 19.04.2020 the unemployment rate 30 day moving average (%)in Urban India 23.93 whereas in Rural India is 20.54 and if no steps are taken in this regard the ratio of unemployment will be further exacerbate”

It was further submitted that the economic and social impact of unregulated mass terminations and delayed payment of salaries or pay cuts will be extremely severe and have a very large and serious human impact, and in contravention of the fundamental rights under Articles 14, 19(1) (g) and 21.

The plea also suggested,

“While the advisories issued by several state governments in relation to non-termination and non- deduction of wages of employees may not have a binding effect, the state governments are empowered to issue a direction in this regard under their respective Shops and Establishment legislations”

It was also urged,

“employers as their Corporate Social Responsibility be mandated to not terminate or layoff the employees and pay their full salaries so that they are not compelled to come on the streets and join the workers on the streets who are struggling to manage to two times meals” as this would “add excessive and unwarranted burden on the Union and State Government”

Read the Petition here:

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