BRAITHWAITE &. (INDIA) LTD. vs THE EMPLOYEES' STATE INSURANCE CORPORATION

The Supreme Court interpreted Section 2(22) of the Employees’ State Insurance Act, 1948, determining that remuneration qualifies as 'wages' only if it is stipulated in the employment contract. The Court held that the incentive payments (inam) introduced by the employer were not part of wages as defined by the Act since they were not guaranteed under the original contract and could be withdrawn at the employer's discretion. The High Court's ruling that inam constituted wages was overturned, affirming that such payments do not meet the statutory definition of wages under the Act.