The Supreme Court on Thursday stated that the Covid-19 pandemic is not a grave public emergency threatening the security of the country that it should enable governments to suspend provisions of the Factories Act that mandate employers to pay workers overtime at double the normal wage rate.
The SC order is significant as it will be applicable to all states that may have taken similar measures or are contemplating them.
Earlier, the Gujarat government had issued a notification allowing employers to increase working hours from 9 to 12 for six days a week. It also allowed the employers to pay normal wages for the extra three hours instead of the statutory double the normal rate.
“It cannot be interpreted to provide a free rein for the state to eliminate provisions promoting dignity and equity in the workplace in the face of novel challenges to the state administration unless they bear an immediate nexus to ensuring the security of the state against the gravest of threats,” a bench of Justices D Y Chandrachud, Indu Malhotra and K M Joseph said.
“The question before the court in this petition is whether the Covid-19 pandemic and the ensuing lockdown imposed by the central government have created a public emergency as defined by the explanation to Section 5 of the Factories Act,” the bench added.
Justice Chandrachud said, “The pandemic has put a severe burden on existing, particularly public health, infrastructure and has led to a sharp decline in economic activities… However, it has not affected the security of India, or of a part of its territory in a manner that disturbs the peace and integrity of the country.”
“As a consequence of this judgment, and in the interest of doing complete justice under Article 142 of the Constitution, we direct that overtime wages shall be paid, in accordance with the provisions of Section 59 of the Factories Act to all eligible workers who have been working since the issuance of the notifications,” the court directed.
The court said that the notifications did not serve any purpose, apart from reducing the overhead costs of all factories in the state. The workers suffered the most during the pandemic and the state government notification cannot be allowed to legitimize the subjection of workers to onerous working conditions knowing that they have feeble bargaining power when pitted against employers, the top court added.