Page 321 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes (14) “employer” includes-
(i) in relation to an establishment which is a factory, the owner or occupier of the
factory, including the agent of such owner or occupier, the legal representative of a
deceased owner or occupier and where a person has been named as a manager of the
factory under clause (f) of sub-section (I) of section 7 of the Factories Act, 1948 (63 of
1948); the person so named; and
(ii) in relation to any other establishment, the person who, or the authority which, has
the ultimate control over the affairs of the establishment and where the said affairs
are entrusted to a manager, managing director or managing agent, such manager,
managing director or managing agent;
(2l) “salary or wage” means all remuneration (other than remuneration in respect of over-time
work) capable of being expressed in terms of money, which would, if the terms of
employment, express or implied, were fulfilled, be payable to an employee in respect of
his employment or of work done in such employment and includes dearness allowance
(that is to say, all cash payments, by whatever name called, paid to an employee on
account of a rise in the cost of living), but does not include-

(i) any other allowance which the employee is for the time being entitled to;
(ii) the value of any house accommodation or of supply of light, water, medical
attendance or other amenity or of any service or of any concessional supply of food
grains or other articles;
(iii) any travelling concession;
(iv) any bonus (including incentive, production and attendance bonus);

(v) any contribution paid or payable by the employer to any pension fund or provident
fund or for the benefit of the employee under any law for the time being in force;
(vi) any retrenchment compensation or any gratuity or other retirement benefits payable
to the employee or any ex gratia payment made to him;
(vii) any commission payable to the employee.
Explanation: Where an employee is given in lieu of the whole or part of the salary or wage
payable to him, free food allowance or free food by his employer, such food allowance or the
value of such food shall, for the purpose of this clause, be deemed to form part of the salary or
wage of such employee.
Establishments to include departments, undertakings and branches -
Where an establishment consists of different departments or undertakings or has branches,
whether situated in the same place or in different places, all such departments or undertakings
or branches shall be treated as parts of the same establishment for the purpose of computation
of bonus under this Act.
Provided that where for any accounting year a separate balance-sheet and profit and loss account
are prepared and maintained in respect of any such department or undertaking or branch, then,
such department or undertaking or branch shall be treated as a separate establishment for the
purpose of computation of bonus under this Act for that year, unless such department or
undertaking or branch was, immediately before the commencement of that accounting year,
treated as part of the establishment for the purpose of computation of bonus.

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