MUIR MILLS CO. LTD., KANPUR vs ITS WORKMEN.

The Supreme Court held that under Section 3 of the U.P. Industrial Disputes Act, 1947, the employer is not authorized to include production and incentive bonuses in the calculation of basic wages. The Court clarified that basic wages are distinct from additional emoluments and must be paid irrespective of bonuses. Consequently, the employer's action of stopping these bonuses while raising the piece rate was deemed unjustified, affirming the workers' entitlement to continue receiving these bonuses as part of their wages.