CEOs to get Arrested if Employees Test Positive for COVID-19? Here’s the Truth

As the consternation around CEOs and directors getting arrested if an employee tests positive for COVID-19 grows, the Ministry of Home Affairs once again offered a detailed clarification on the matter. The MHA stated that all such fears and apprehensions are misplaced. “Misplaced apprehension. No such clause in Lockdown2.0 guidelines. To be safe, follow National COVD-19 Directives and SOPs at workplaces,” said the MHA Spokesperson.

A claim that legal action would be taken by states, including imprisonment of CEO and factory getting sealed in case an employee tests positive for COVID-19, had become a cause of concern for leading industrialists. “The calibrated restoration of economic activity will be jeopardised by the wrong disincentives. In fact, we need the right incentives. This approach runs counter to the PM’s stated views about placing trust in the industry,” tweeted Anand Mahindra, Chairman of Mahindra Group, on the issue.

While the clause under DMA ACT 2005 does mention that if the director, manager, secretary or other officers of the company, such director, manager, secretary or others, if found guilty, can be punished, it has been wrongly interpreted to mean the following:

• States may take legal action, including imprisonment of CEO, in case a COVID-19 positive employee is found in the factory.
• In such a situation, the premises of the factory would be sealed for 3 months.
• In case of non-compliance of precautionary measures, the factory may be closed down for 2 days and may be allowed to restart after full compliance.

The MHA has clarified that there is no such clause in the consolidated revised guidelines, and hence misapprehensions on the same must be avoided. However, industries have been advised to strictly follow the SOPs mentioned in the MHA guidelines to protect employees from getting infected. MHA, on 15 April 2020, had issued an order to exempt certain activities under the consolidated revised guidelines to fight COVID-19, in areas not included in hotspots or containment zones. It has been stated in the order that IT and ITes, manufacturing plants, and industries in the safe zones could reopen provided they implemented all measures stated in the order.

(With inputs from PIB)