The Kerala government has decided to bring in an ordinance to defer salaries of state employees during emergencies. The ordinance is to bypass a High Court order that stayed the government’s decision for withholding six day salaries of government employees for a period of five months. If the ordinance is passed by the assembly and approved by the Governor, the state will not have to challenge the High Court's stay.
The ordinance does two things. First, it allows the government to defer upto 25% of employees' salaries during an emergency. And secondly, it puts a time limit of six months for the government to declare when this deferred salary will be paid to the employees, explained Finance Minister Thomas Isaac.
Taking a jibe at the AK Antony led Congress government that had once cut salaries of government employees during a financial crisis, Thomas said that the ordinance will not enable the state to cut salaries.
On April 23, the state government issued an order stating that it would defer paying six days’ salaries of all government employees. The deferment of six days worth of pay will be done every month for five months beginning April. The order said it apply to all government and autonomous government body employees who are earning more than Rs 20,000 per month, it however excluded those who have already accepted the state's challenge by giving one month salary to CM's Relief Fund.
“The High Court observed that the government order for salary cut didn’t have legal standing based on Article 300 A of the Constitution. Hence the Cabinet has decided to recommend to the Governor to bring in an ordinance in that direction,” Isaac further said.
A bench of the Kerala High Court had said that as per Article 300 A of the Constitution - which states that no person shall be deprived of his property save by the authority of law - an individual's salary is, prima facie, considered property. ‘Therefore, deferment of salary, for whatever purposes, amounts to denial of property’,