UNITED BREWARIES LTD Vs. REGIONAL DIRECTOR

JUDGEMENT

(1.) It is an admitted case that incentive had been paid to the employees of the appellant. But it was not counted for the contribution payable to the Employees State Insurance. A demand was made. There upon a petition was filed by the appellant before the E.I. court under Sections 75,76,77 of the Employees State Insurance Act seeking a relief that incentive paid does not come within the wages to attract contribution. The court below did not find that contention sustainable and dismissed the application. The court below found that the incentive paid was a part of the wages paid or payable to the workmen concerned. It is in the above background this appeal has been filed.

(2.) The only point is whether the incentive paid in terms of the scheme evolved by the appellant in tune with clause-II of settlement Ext.P8 forms part of the wages.

(3.) It is an admitted fact that there was a long term conciliation settlement. The payment made to the workmen once in three months is in terms of the aforesaid settlement. Settlement forms it is an admitted fact, contract of employment. The benefit of bonus/incentive is thus a payment made in terms of contract of employment. But for the settlement this amount would not have been paid to the workmen.