Ad Hoc Payment Made as per Interim Orders Does Not Form Part of Wages under Payment of Wages Act

Case: Chairman­ Cum ­managing Director Fertilizer Corporation Of India Ltd. Vs Rajesh Chandra Shrivastava

Coram: Justices Hemant Gupta and V. Ramasubramanian

Case No.: CA 2260 OF 2022

Court Observation: The definition of the expression is in 3 parts, the first part indicating the meaning of the expression, the second part indicating what is included therein and the third part indicating what is not included therein. In the first part of the definition, the emphasis is on what is earned by the employee “in accordance with the terms and conditions of employment” .. Irrespective of whether what was earned has been paid or remained payable, the same is included in the definition, provided it is in accordance with the terms and conditions of his employment…

In The Straw Board Manufacturing Co. Ltd. vs. Its Workmen this Court clarified the meaning of the expression “wages” under Section 2(s) of the very same enactment, as follows: “We clarify that wages will mean and included basic wages and Dearness Allowance and nothing else”.

Whenever the State or instrumentalities of State come up with appeals challenging small benefits granted to individual litigants, this Court applies the test of proportionality to see whether the quantum of benefits granted to the individual concerned, justifies the examination of the question of law, at the cost of that little man from a far off place. The refusal of this Court to go into the question of law in such cases, cannot be treated as tantamounting to answering the question of law in a particular manner.

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Keywords

Ad Hoc Payment, Interim Orders