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1984 (9) TMI 273
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....ance' and 'Incentive Allowance' paid by an employer to his employees. Section 2(22) defines 'wages' as meaning: "all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and includes any payment to an employee in respect of any period of authorised leave, lock out, strike which is not illegal or lay off and other additional remuneration, if any, paid at intervals not exceeding two months, but does not include -(a) any contribution paid by the employer to any pension fund or provident fund, or under this Act; (b) any travelling allowance or the value of travelling concession; (c) any sum paid to the person employed to defray....
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....as defined includes remuneration paid or payable under the terms of the contract of employment, express or implied but further extends to other additional remuneration, if any, paid at intervals not exceeding two months, though outside the terms of employment. Thus remuneration paid under the terms of the contract of the employment lexpress or implied) or otherwise if paid at intervals not exceeding two months is wages. The interposition of the clause 'and includes any payment to an employee in respect of any period of authorised leave, lock out, strike which is not illegal or lay off' between the first clause, 'all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express of implie....
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....eto (that is, paid at intervals not exceeding two months). That was also the view taken by a Full Bench of the Andhra Pradesh High Court in Employees State Insurance Corpn. Hyderabad v. Andhra Pradesh Paper Mills Ltd. and also the Bombay High Court in M/s Mahalaxmi Glass Works Pvt. Ltd. v. Employees' State Insurance Corpn. But this aspect of the matter has been completely overlooked by this Court in Kirloskar's case." In Employees State Insurance Corporation, Hyderabad v. Andhra Pradesh Paper Mills Ltd., Rajahumundry, a Full Bench (Divan, C.J., Raghuvir and Gangadhara Rao, J.) of the Andhra Pradesh High court held that incentive bonus paid to an employee (which the Court, on the facts of the case, found was not r....
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....d others, where the learned Judges had held that "the additional remuneration sought to be included by the expression' and includes other additional remuneration' must be remuneration which though no part of the wages could be paid as part of the terms of contract of employment." The Full Bench did not agree with the view expressed by the learned Single Judge and said:- "We are unable to agree with this part of his reasoning and for the reason which we have set out hereinabove we disagree with this part of his judgment in para (3)". We express our respectful agreement with what has been said by the Full Bench of the Andhra Pradesh High Court in the above extracted passage and their dissent from the view expresse....
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....dy, J. I entirely agree that on true interpretation of the word 'wages' defined in S.2(22) of the Employees' State Insurance Act, 'wages' must necessarily include 'House Rent Allowance, Night Shift Allowance, Heat, Gas and Dust Allowance and Incentive Allowance'. The definition of 'wages' has been set out in the judgment of my learned brother. The inclusive part and the exclusive portion in the definition clearly indicate, to my mind, that the expression 'wages' has been given a very wide meaning. The inclusive part of the definition read with exclusive part in the definition clearly shows to my mind, that the inclusive portion is not intended to be limited only to the items mentioned therein. T....