RAJASTHAN STATE ROAD TRANSPORT Vs. EMPLOYEES STATE INSURANCE
LAWS(RAJ)-2001-9-26
HIGH COURT OF RAJASTHAN
Decided on September 20,2001

Rajasthan State Road Transport Appellant
VERSUS
EMPLOYEES STATE INSURANCE Respondents

JUDGEMENT

RAJESH BALIA, J. - (1.) HEARD learned Counsel for the parties.
(2.) THIS appeal arises under the Employees State Insurance Act, 1948 under Section 82 thereof. The substantial questions of law which appellant seeks to raise are as under: (i) Whether the payments made to the employees as production incentive under the periodical scheme and the night shift allowance are covered by the definition of 'wages' given in Section 2(22) of the Act? (ii) Whether the conductors and drivers employed by the Corporation who have no duties with regard to the production as such can be said to be covered by the provisions of the Act? It is not in dispute that the appellant Rajasthan State Road Transport Corporation is an establishment to which Act of 1948 applies. The controversy as emanating from the aforesaid two questions centers around two issues namely whether the production incentive paid to its employees and night shift allowance paid to the workers is included in the definition of 'wages' under the Act for the purpose of computing the contribution to be made by the employer towards State Employees Insurance Scheme and second question arises about the inclusion of the conductors and drivers employed by the Corporation within the meaning of its employees for the purposes of Act of 1948.
(3.) THE definition of 'wages' under Section 2(22) reads as under: 'Wages' means all remuneration paid or payable in cash to an employee, if the terms of the contract of employment, express or implied, were fulfilled and Includes any payment to an employee in respect of any period of authorised leave, lock -out, strike which is not illegal or lay -off and other additional remuneration, if any paid at intervels not exceeding two months but does not include - (a) any contribution paid by the employer to any pension fund or provident fund, or under this Act; (b) any travelling allowance or the value of any travelling concession; (c) any sum paid to the person employed to defray special expenses entailed on him by the nature of his employment; of (d) any gratuity payable or discharge. A perusal of the definition goes to show that it includes everything payable to the employee by way of remuneration, except item Nos. (a) to (d) exclusively excluded from the purview of remuneration to be treated as wages. The production incentive or any amount paid by way of incentive is only referable to as part of remuneration or additional remuneration. The term all 'remuneration paid or payable' is of wide amplitude to include whatever is payable by the employer to his employee. The construction of such wide amplitude is only to be found in exclusion clause of definition. The only thing required is that such amount in cash must be payable on fulfilment of terms of contract.;


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