The Supreme Court on Friday directed that no coercive action should be taken till July last week against private companies, which have failed to pay full wages to their employees during the coronavirus-induced lockdown period.

A bench of Justices Ashok Bhushan, Sanjay Kishan Kaul and M.R. Shah said industries and employees need each other and they should sit together to arrive at a settlement on the issue of payment of wages.

The bench asked the state governments to facilitate such settlement process and file its report with the labour commissioners concerned.

It also asked the Centre to file an additional affidavit within four weeks with regard to the legality of Ministry of Home Affairs' March 29 circular which had mandated payment of full wages during the lockdown period.

The bench posted the petitions filed by various companies against the March 29 circular, for further hearing in last week of July.