Page 319 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes General Remarks

It is to be noticed that, apart from providing for equal pay for men and women workers under
the same employers, for doing same work or work of a similar nature, the Act in section 5
stipulates that no discrimination is to be made by the employer while recruiting men and
women workers. Likewise, Sec. 5 provides for advisory committees to be set up by the appropriate
Government. The main function of the committees is to examine and advise the government on
steps to be taken, both to prevent reduction of employment opportunity for women and also to
enhance their employment.
Unlike in the labour laws, Sec. 12 empowers complaints to be filed before courts, not only by the
Government functionaries but also by aggrieved persons or by recognised welfare institutions
or organisation.

Selected Case Law

i) A settlement arrived at between the management and employees cannot be a valid ground
for effecting discrimination (Mackinson Mackerzie & Co vs. Audrey D’costa ((1987)
2 Sec. 409).
ii) The benefit conferred on females under the act is not absolute and unconditional. Sec. 16
clearly authorises if a declaration is made by the appropriate Government (Air India vs.
Nergesh Meerza ((1981) 4 Sec. 355).
iii) The principals of equal pay for equal work is not applicable to professional services
(C. Girijambal vs. AP Government ((1981) 2 Sec. 155).
iv) No exemption can be claimed by an employee on the ground of financial incapability
(Mackinson Macherzie & Co. vs. Audrey D’costa ((1987) 2 Sec. 469).
v The Payment of Bonus Act, 1965

13.2 Payment of Bonus Act

Payment of bonus is not the product of generosity of the employer but is one paid in the name
of industrial peace and to make available to every employee a living wage, which more often is
more than the actual wages. It is thus the difference between the actual wages and the living
wages, which is ascertained on the basis of available material such as available surplus, industry-
wise wages or region-wise wages and various other aspects connected with bonus and
organisations.
Profits are made possible by the contribution of both the labour and the capital, hence the labour
has a right to share in the increased profits that are made in a particular period. But the distribution
of increased profits among the workers is better achieved by giving annual bonus than by a
further rise in the wages. Wages must be fixed on the basis of normal conditions.
This part comprising the Payment of Bonus Act, 1965 as amended up to date with short comments
and latest case law will meet the requirement of having a first hand understanding about the
payment of bonus in India.

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