Page 313 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes Payment of bonus finds justification on the ground that the workers should have a share in the
prosperity of the concern for which they have made their contribution. The Bonus Commission
rejected the argument that the payment of bonus is meant to fill up the gap that is in existence
between the actual and the living wages though in the process of sharing the prosperity the gap
is narrowed down or closed. It was not felt appropriate by the Commission that the amount of
available surplus to be set apart for the purpose of payment of bonus should be linked with the
wages level for that would introduce uncertainty and there are in existence wage boards for
different industries with the object to reduce disparity in the wages prevailing in different
industries.

13.1 Equal Remuneration Act, 1976

India satisfied ILO Convention 100 on equal remuneration in 1958. However, it was only during
1975 the international year of the women that India promulgated the equal remuneration
ordinance, 1975 to give effect to article 39 of the Constitution of India which directed among
other things, equal pay for equal work for both men and women. The ordinance was replaced in
1976 by the Equal Remuneration Act, 1976.

Scope and Coverage

The act extends to the whole of India. The act came into force on dates notified, from time to
time, by the Central Government in respect of different establishments or employments, so that
the total coverage was completed within 3 years from the passing of the Act, which was February
1976. Thus, the act was extended to all establishments, employments, public or private, including
domestic service and this is the only labour act with universal coverage (Sec. 1).
1. Some of the important definitions in the Act include:
a) “appropriate Government” means

i) in relation to any employment carried on by or under the authority of the
Central Government, or a railway administration, or in relation to a banking
company, a mine, oilfield or a major port or any corporation established by or
under the Central Act, the Central Government; and

ii) in relation to any other employment, the State Government;
b) “remuneration” means the basic wage or salary, and any additional emoluments
whatsoever payable, either in cash or in kind to a person employed in respect of
employment or work done in such employment, if the terms of the contract of
employment, expenses or implied, were fulfilled,;
c) “same work or work of a similar nature” means work in respect of which the skill, effort
and responsibility required are the same, when performed under similar working
conditions by a man or a woman and the differences, if any, between that skill, effort
and responsibility required of a man and those required of a woman are not of
practical importance in relation to the terms and conditions of employment;

d) “worker” means a worker in any establishment or employment in respect of which
this Act has come into force;
Equal pay for equal work

Equal pay for equal work, it is self evident, is implicit in the doctrine of equality enshrined
in Art. 14; it flows from it. Because Cl. (d) of Art. 39 spoke of “equal pay for equal work for
both men and women,” it did not cease to be a part of Art. 14. To say that the said rule

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