HANDLOOM HOUSE, ERNAKULAM vs REG.DIRECTOR, ESI CORPN.,TRICHUR

The Supreme Court held that incentive bonuses and sales commissions paid to employees by Handloom House fall within the definition of 'wages' under Section 2(22) of the Employees State Insurance Act, 1948. The Court distinguished previous cases by emphasizing that the timing of payment does not negate the nature of these payments as remuneration for labor. The High Court's decision to allow the Corporation's demand for additional contributions was quashed, affirming that such payments are indeed part of wages as defined by the Act.