THE MANAGEMENT OF MARINA HOTEL vs THE WOREMEN

The Supreme Court held that under the Delhi Shops and Establishments Act, 1954, Section 22, workmen are entitled to bonus if they contribute to the earning of profits, regardless of receiving service charges and tips. The Court established that bonus is intended to bridge the gap between existing wages and living wages, and if there is a surplus of profits, the workmen are entitled to it. However, the Tribunal's award of 15 days casual-cum-sickness leave was found to be erroneous and was reduced to the statutory limit of 12 days as per the Act.