AI Drafter 
TaxTMI 
TaxTMI 
1959 (9) TMI 57
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.... in respect of bonus. The original petitions thus relate to the award in respect of the following issues: "(2) Are the workmen entitled to any bonus in excess of what the employers have paid for the year 1125? . (3) Are the workmen entitled to any bonus in excess of what the employers have paid for the year 1126? (4) Arc the workmen to be given one day's leave with wage for every twenty days' work Irrespective of any other consideration? (9) Are the workmen entitled to any sick leave or festival holidays with pay? (13) Are the workmen entitled to any compensation during the period for which the factories remain closed for reasons beyond the control of the management?" 3. The Industrial Tribunal awarded bonus at varying rates in respect of most of the concerns and disallowed the same in respect of some. On the 4th issue the award stated that the workers were to get one day's leave with wages for every 20 days of work irrespective of the total number of days worked in a year. On the 9th issue the Tribunal held that the workers were entitled to one day's leave with wages on Onam day. However in stating the conclusion on t....
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....at such compensation was in the nature of "Lay off compensation", and that grant of such compensation was therefore to be governed by the provisions contained in Chapter V-A of the Industrial Disputes Act and not by arbitrary notions of social justice. It was further pointed out that this being a seasonal industry the provisions of Sections 25C to 25E were not applicable to the Industry and that the Tribunal therefore had no jurisdiction to award compensation in the absence of a declaration by the Government that the industry was a non-scasonal one. During the pendency of the proceedings before the Tribunal the State Government declared cashewnut industry as a non-seasonal one but the decision was quashed by this Court in O. P. Nos. 275 and 276 of 1956. The Standing _ Orders applicable to all these concerns also provide that there would be no work for three or four months in the year. In this connection, it is useful to refer to the relevant provisions of the Industrial Disputes Act. Chapter V-A deals with "Lay off and 'retrenchment'. Sections 25C to 25E provide as follows; "25-C (1) Whenever a workman (other than a badli workman or a casual workman) whose name is)....
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.... has been laid-off, or in any other establishment belonging to the same employer situate in the same town or village or situate within a radius of five miles from the establishment to which he belongs, if in the opinion of the employer, such alternative employment does not call for any special skill or previous experience and can be done by the workman, provided that the wages which would normally have been paid to the workman are offered for the alternative employment also; (ii) if he does not present himself for work at the establishment at the appointed time during normal working hours at least once a day; (iii) if such laying off is due to a strike or slow-ing down of production on the part of workmen in another part of the establishment." 8. Section 25-A provides that Sections 25-C to 25-E inclusive shall not apply to industrial establishments which are of a seasonal character or in which, work is performed only intermittently and that it a question arises whether an industrial establishment is of seasonal character Or whether work is performed there only intermittently, the decision of the appropriate Government thereon shall be final. The Tribunal accept....
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....: Provided further that if he is not given any such employment even after so presenting himself, he shall not be deemed to have been laid-off for the second half of the shift for the day and shall be entitled to full basic wages and dearness allowance for that part of the day". "Retrenchment" has been defined by the Act. " 'Retrenchment' means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include (a) voluntary retirement of the workman, or (b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf or (c) termination of the service of a workman on the ground of continued ill-health." 10. It is argued that Section 25-A of the Act applies only to workmen who are on the muster rolls and who have not been retrenched. Retrenchment pre-supposes the continuance of the industry and there is no question of retrenchment here. The industry has standing order and a copy of the same has....
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....ctory will be for eight or nine months, it cannot be held that an employer should provide work for 245 days in an year and he would be liable on principles of social justice to pay compensation for any period which falls short of it. The decision of the Tribunal on issue No. 13 should therefore be quashed. 12. The only point which remains is that covered by the 4th issue which reads as follows : "Are the workmen to be given one day's leave with wage for every 20 days work irrespective of any other consideration?" 13. Section 79 of the Factories Act provides that one day's leave with wages for 20 days of work should be given only to workmen who work for 240 days, in an year. The finding of the Tribunal is attacked on the ground that Such being the provision in the Factories Act, the Tribunal has no jurisdiction to impose a greater burden on the employers by directing that irrespective of the total number of days worked in an year, a worker should get one day s leave for every 20 days work. There is no substance in this contention. It has already been stated while considering the question of paying compensation for unemployment that the industry is seasonal in ....