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Payment of salary during lockdown order revised

Numerous petitions in Honorable Supreme Court:

In the order dated 29th March 2020, MHA made it mandatory to pay a salary. Even if they are not working due to lockdown. This order created unrest in industries. How the government can mandate to pay salary even for days not worked. When there is no support from the government. Numerous petitions were filed against this order. Supreme court admitted them in most of the cases. In the case of HAND TOOLS MANUFACTURERS ASSOCIATION, it ordered not to take any coercive action. The order was passed under 10(2)(I) of the Disaster Management Act. You can read both the orders here in this post.

MHA issued revised SOP’s without mentioning of payment of salary:

On 19th May 2020, MHA issued revised SOP’s. Most of them are about the movement of stranded workers. There is no mention of mandatory salary payments to employees. This Order has suppressed the order no.40/3/2020 issues on 1st May 2020.

MHA Order Dt. 19.5.2020 reg. revised SoPs on the Movement of stranded workers by trains

MHA Order Dt. 1.5.2020 to extend Lockdown period for 2 weeks w.e.f. 4.5.2020 with new guidelines

Open issues:

Whether the industries are required to pay a salary for the period falling in these two order? The order of MHA is prospective and there is no mention fro any relief for the period from last order till the latest one. Whether Industries are still liable to pay salary during lockdown no. 1? What will be the fate of all those petitions? How employees will be able to pay their dues. If they are fired how they will get a new job? Although payment of salary during lockdown without work was a huge burden on businesses. Let us wait for the final order of SC in these cases.

payment of salary during lockdown

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Profile photo of CA Shafaly Girdharwal CA Shafaly Girdharwal


New Delhi, India

CA Shaifaly Girdharwal is a GST consultant, Author, Trainer and a famous You tuber. She has taken many seminars on various topics of GST. She is Partner at Ashu Dalmia & Associates and heading the Indirect Tax department. She has authored a book on GST published by Taxmann.

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