Source: http://www.hrinfo.in/2011/04/case-laws_08.html
Timestamp: 2019-04-25 06:00:49+00:00

Document:
• Lay-off compensation paid to the employees will form part of 'wages' under the Act for determination of bonus payable to the employees.
1. P.K. Mohankumar v. Deputy !J1bour Commissioner, 1991 LLR 138 (Ker HC).
2. Mohan Kumar v. Deputy lAbour Commissioner, 1996 LLR 765 (Ker He).
• Tamil Nadu Water Supply & Drainage Board will not be entitled to exemption from paying bonus under the Payment of Bonus Act.
Tamil Nadu Water Supply and Drainage Board Engineers Association v. State Government of T.N. and Tamil Nadu Water Supply and Drainage Board, 1991 LLR 851: 1991-I! LL) 394 (Mad HC).
• Cash site allowance and food allowance paid to employee - Whether form part of salary to attract the payment of bonus? No.
United Shippers and Dredgers Ltd., Nilgiris v. lAbour Court, Coimbatorc, 1992 LLR 607: 1992¬1 LLN 848 (Mad HC).
• Petitioner's application for exemption of payment of bonus - On the ground of catastrophic fire causing colossal damage which crippled its very existence of the mills - Subjected to continuous heavy financial losses - There is a good and sufficient cause for grant of reliefs under section 36 - Exemption from payment of bonus should be granted.
Phoenix Mills Ltd. v. The State of Maharashtra, (1993) 11I LL) (Supp) 844: 1993 LLR 783: 1993(67) FLR 231 (Born HC).
• Payment of Bonus - Application (for exemption by 14 Mills) - Decided by Minister by giving a hearing on single day• Also passed almost identical orders in all the cases - Though it had distinct facts - A case of non-application of mind • Order liable to be struck down on this ground.
Phoenix Mills Ltd. v. The State of Maharashtra, (1993) III LL) (Supp) 844: 1993 LLR '783: 1993(67) FLR 231 (Born HC).
Bonus to suspended employee - see under the head 'suspension'.
• Entitlement of an employee reinstated with back wages - Whether Bonus is payable? Yes.
Project Manager, Oil and Natural Gas Commission v. Sham Kumar Sehgal, (1995) 1 LLN 901: 1994 UC 2086: (1995) 71 FLR 176: 1995 LLR 619 (Guj HC).
• A workman who has worked for two years will be entitled to minimum bonus @ 8.33% for the period he has worked.
Balwant Dinkar Kndam v. Proprietor, MCGAY Industries, 1995 LLR 624: 1995(70) FLR 1064 (Born HC).
• Denial of ex gratia under a scheme in lieu of bonus to daily wage employees will not amount to discrirnina tion.
Haryana State Roadways through General Manager, Hissar v. Presiding Officer, LAbour Court, Hissar, (1996) 2 PLR 727: (1997) 75 FLR 756: 1996 LLR 992: 1996-1I LLN 365 (P&H HC).
• Payment of Bonus Act will not apply to Haryana State Roadways of Haryana Govenunent.
Haryana State Roadways through General Manager, Hissor v. Presiding Officer, LAbour Court, Hissar, (1996) 2 PLR 727: (1997) 75 FLR 756: 1996 LLR 992: 1996-1II LLN 365 (P&H HC).
• Payment of bonus will be forfeited if a bus conductor is guilty of reissuing sold tickets and mis-appropriation of even Rs. 1.60.
Pandiyan Roadways Corporation Ltd. v. Labour Court, 1996 LIC 2589: 1997 LLR 83: 1996-1I LLj 1229 (Mad HC).
• Amendment to the Payment of Bonus Act with retrospective operation from raising the limit from Rs. 1600 to Rs. 2500 and from Rs. 2500 to Rs. 3500 will not be ultra vires of the Constitution of India.
I.K. Acrylics v. Union of India, (1997) 4 LLN 85: 1997-1I CLR 881 (Raj HC).
• Enhancement of salary ceiling for bonus with retrospective effect is justified.
J.K. Acrylics v. Union of India, (1997) 4 LLN 85: 1997 LLR 1150 (Raj HC).
• T.N. Water Supply and Drainage Board is not exempted under the Payment of Bonus Act.
Tamil Nadu Water Supply & Drainage Board v. Tamil Nadu Water Supply & Drainage Board Engineers' Association, 1998 LLR 417 (SC).
• Employee cannot claim bonus linked with productivity unless there is a special agreement.
S,G. Pharmaceuticals v. Sarabhai Chemical Staff Association, (1999) 1 CLR404: 1999 LLR 291 (Guj HC).
• A reinstated employee will not entitled to bonus for the period when he did not work because of his illegal termination.
Ahmed Hussain v. Management of Swadeshi Cotton Mills, Pondicherry, (2000) 96 FJR 476: 1999 LLR 904 (Mad HC).
• When an employee is illegally dismissed, it cannot be said that the employee "did not work in the establishment" as normally understood. "Worked" in section 8 of the Payment of Bonus Act, 1965, having regard to the historic background should mean "ready and willing to work" and such working should not be understood with reference to the dictionary meaning of the word and the eligibility understood in the abstract. Thus he will be entitled to Bonus.
Ahmed Hussain v. Mnnagement of Swadeshi Cotton Mills, (1999) 1I LLj 972: 2000 (96) FJR 476 (Mad HC).
• Retention allowance paid to seasonal employees will form part of 'wages' under the Payment of Bonus Act, 1965 and such employees will be entitled to bonus.
Sangammer Bhag Sahakari Sakhar Karkhana Ltd. v. Rashtriya Sakhar Karngar Union, (2001) 1I LLJ 707: 2001 LLR (Sum) 1068 (Born HC).
• Granting exemption from the provisions of bonus when the financial position of the company was not considered will not be justified.
Andhra Pradesh State Forest Development Corporation Ltd., Employees Union v. Government of Andhra Pradesh, Environment, Forests, Science and Technology (Forest II) Department, 2001 LLR (Sum) 522 (AP He).
• A captive division of the main HMT Watch Company will not be eligible for infancy benefit for payment of bonus.
Workmen of Hindustan Machine Tools Ltd. (Specialised Watch Case Division) v. Hindustan Machine Tools Ltd" 2001 LLR 465.
• Medical college, not hospital will be exempted from Payment of Bonus Act.
Christian Medical College and Hospital, Vel/ore v. Presiding Officer, Industrial Tribunal, Madras, (2002) 1 MLJ 720: (2002) 11 CLR 69: (2002) 93 FLR 722: 2002 LLR 621: 2003 (98) FLR 1153 (Mad HC).
• Bonus can be forfeited if dismissal is for riotous behaviour.
KL.J. Plastics Ltd. v. Labour Court-lII, Hyderabad, 2002 LIC 2275: (2002) 4 LLN 638: (2002) 95 FLR 966: (2002) III LLJ 619: 2002 LLR 1073 (AP He).
• Ex gratia not being bonus under the Payment of Bonus Act can not be claimed by the workman as a matter of right since it is paid at the will of the employer.
Godrej Soaps Ltd. v. Baban Baburao Nemane, (2003) 98 FLR 569: 2003 LLR 1065: 2003-111 LLJ 1036 (Born He).
• Even though the workmen have worked during the period 1994-95, it was only by way of a goodwill gesture that the ex gratia payment had been made to those who were not within the purview of the Payment of Bonus Act, 1965 hence they could not claim to be such employees who had been included in the order for payment.
Godrej Soaps Ltd. v. Baban Baburao Nemane, (2003) 98 FLR 569: 2003 LLR 1065: 2003-11I LLJ 1036 (Born He).
• City compensatory allowance will form part of wages for calculation of bonus.
Jeeva Transport Corporation Ltd. v. The Presiding Officer, Labour Court, Coimbatore, 2004 LIe 2202: (2004) III LLJ 422: 2004 LLR 802 (Mad He).
• Deduction to the extent of 40% of net profit to create reserve fund by a Bank as permitted by the Reserve Bank of India will be proper while arriving at the allocable surplus for calculation of bonus.
Management of Tamil Nadu State Apex Cooperative Bank v. Workmen rep. by its Secretary, TNSC Bank Employees' Union, Chennai, 2005-1 LLJ 905 (Mad He).
• Piece-rated employment like loading and unloading on contract basis on a non¬exclusive basis has not been visualized under the Payment of Bonus Act.
Kera/a State Civil Supplies Carpn. v. Industrial Tribunal, 2007 LLR 525 (Ker He).
• Employer-employee relationship, contemplated under the Bonus Act is not simultaneous employment during the same period under more than, one employer.
Kerala State Civil Supplies Corpn. v. Industrial Tribunal, 2007 LLR 525 (Ker He).
• Bonus not payable on the suspension allowance since employee did not actually work.
Deccan Merchant Coop, Bank Ltd. v. Avdhoot Marutirao Rane, 2008 LLR 30 (Born He).
• A dispute about bonus is to be decided by the Industrial Tribunal not the Labour Court.
H.P. State Electricity Board v. Ranjeet Singh, 2008 LLR 766 (SC).
• Bonus can be claimed under Payment of Bonus Act in Labour Court.
Shivanand Misra v. M.P. Road Transport Corporation, Bhopal, 2009 LLR 40 (MP He).

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