MOHANKUMAR Vs. DY LABOUR COMMISSIONER

JUDGEMENT

(1.) Whether lay off compensation is part of "wages" for computing bonus T.L.Viswanatha Iyer, J. felt that the said question needs consideration by a larger bench and hence the Original Petition in which this question arose has come up before us. However, Jagannadha Raju, J, in another Original Petition proceeded to decide the same question and that judgment is challenged in the Writ Appeal before us. So we heard both cases together which are being disposed by this judgment.

(2.) Lay off is the failure or refusal or inability of an employer to give employment to his workman on account of certain contingencies such as shortage of power or raw material or breakdown of machinery. It is so defined in S.2(kkk) of the Industrial Disputes Act 1947 (for short 'the I.D. Act'). When a workman is laid off, his employer is liable to pay him compensation which shall be 50% of the wages which would have been payable to him had he not been laid off. This is the purport of S.25C of the I..D. Act. The question, therefore, can be refrained as this. When bonus is computed, should the lay off compensation be counted as wages.

(3.) S.2(21) of the Bonus Act defines "salary or wages" as follows: