MANAGING DIRECTOR, CHALTHAN VIBHAG SAHAKARIKHAND UDYOG, CHA vs GOVERNMENT LABOUR OFFICER & ORS.

The Supreme Court ruled that the retaining allowance paid to workmen in a seasonal establishment qualifies as 'salary or wage' under Section 2(21) of the Payment of Bonus Act, 1965, thus making it eligible for bonus calculation under Section 10 of the Act. The Court upheld the Gujarat High Court's decision that the Industrial Court's award, which excluded the retaining allowance from bonus calculations, was incorrect. Consequently, the Court affirmed the obligation of the management to include the retaining allowance in the bonus computation for the workmen.