22.8.2016
To
The Chairman cum
Managing Director,
TANGEDCO/Chennai-2.
Respected Sir,
Sub: Tangedco –
Bonus – Payment of Bonus and
Ex-gratia to the Workmen and Ex-gratia to TCL
and
Contract Labourers of Tangedco – Under
Payment
of Bonus Act 1965 for accounting year
2015-2016 –
Regarding.
Ref: Memo
No.39538/A3/A32/2016-4 dt.18.8.2016 from
the
Secretary/Tangedco.
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We have come across a circular
dt.18.8.2016 from the Secretary/Tangedco to all the CEs and SEs and other
officers of the Board requesting to make arrangements for calculation of the
total wages earned by each of the employees and also to furnish the No. of
employees eligible for Bonus for full year/Part of the year 2015-16, covered
under the wage settlement.
From the above circular we
infer that the ex-gratia alone will be
paid to TCL and Contract Labourers of Tangedco instead of payment of Bonus and
Ex-gratia on par with other workmen of Tangedco under payment of Bonus Act 1965
for accounting year 2015-16, as per the normal practice being followed for
decades
in this industry.
…2..
..2..
In this connection we would like to
submit that
1.The payment of Bonus Act 1965 is being
covered in this industry ever since
the year of its enactment.
2.The Act provides for payment of Bonus to
persons employed in the
Establishment on the basis of profits or
on the basis of production or
Productivity and for matters connected
therewith.
3.The implementation of the provisions of
the Act by the administration is
mandatory.
4.According to provision 2(13) of the Act
“employee” means any person
(other than apprentice) employed on
salary or wage not exceeding twenty
one thousand rupees per mensum in any
industry to do any skilled or unskilled
manual, supervisory, managerial,
administrative, technical or clerical work for
hire or reward, whether the terms of
employment be express or implied.
5.The above provision of the Act does not
bar the ‘so called Contract Labourers’
engaged and paid Rs.250/- per day
directly by the Board to be an employee.
Further the Act also does not bar a
daily rated workman i.e.TCL to be an
employee. The definition is inclusive, since, the so called Contract Labour
and Temporary Casual Labour are
performing the duties of unskilled manual
labour and as such they are “employees”,
under the Act. Hence, they cannot
be deprived their legitimate right of
Bonus payments. Even in the TNEB
standing orders, Casual and Temporary
are classified as Workmen.
Clerical workmen standing
order No.3a
Other than Clerical
workmen standing order No.3
6.The following High Court judgements
supports our claim for Entitlement of
Bonus to a
Daily Wages
(i )In the case of Sumitra Devi Vs Himachal Pradesh State Elecy.,
Board, reported in 2010
(1) LLJ 199 (HP HC) Entitlement of Bonus to a Daily Wages it has been decided as follows:
“The petitioner was a peon
on daily wages with the respondent since
1993. The respondent-employer was denying her the
payment of
Bonus on the grounds,
inter alia, that she was not an ‘employee’
under section 2(13) of the
Payment of Bonus Act,1965. Hence, she
filed writ petition under
Article 226 of the Constitution of India. After
having observed and
considered the definition of sections 2(13), 8
…3..
…3…
and 10 of the Payment of
Bonus Act,1965 and certain decided cases
by the Supreme Court, the
High Court held that the Payment of
Bonus Act did not bar a
daily rated workman to be an employee as
the definition in Section
2(13) of the Act was conclusive and daily
wage employee is covered
within the definition of section 2(13)
of the Act and entitled to
claim bonus.”
(ii) In the case of
HPSEB v Krishnan Dutt, reported in 2011 LLR 111, 2010(127)FLR 577 (HP. HC.) it has been decided that
under Section 2(13) of
the payment of Bonus Act 1965 it is
immaterial whether an employee is daily wages, temporary, permanent, weekly
paid, monthly paid etc. The only pre
condition is that the employee should have worked in the establishment for not
less than 30 working days in an accounting year. The term ‘salary’ or ‘wage’ is defined under
section 2(21) of the Act for the purpose of calculation of bonus. Every employee shall be entitled to be paid
by his employer in an accounting year, bonus, in accordance with the provisions
of section 8 of the Act.
(iii) In the case of Himachala Pradesh State Forest Corporation Limited and
another VS Mohan Singh and another, reported in
2014 (141) FLR 863 (HPHC)-2014 LLR474 it has been decided has follows:
“Section 8 – Bonus –
Entitlement of – Every employee – Irrespective
of being a daily wager,
casual, temporary or permanent, paid
weekly or monthly-shall be
entitled to bonus in accordance with
Act-If he has worked for
not less than thirty working days in that
Year.
The Payment of Bonus Act,
1965 does not make any distinction as to
whether an employee is
daily wager, temporary, permanent,
weekly paid, monthly paid
etc. The only pre-condition is that he
should have worked in the
establishment for not less that 30
working days in an
accounting year. Subject to the above
conditions,
an employee is entitled to
be paid by his employer the bonus as
provided under the Payment
of Bonus Act 1965 in case the
establishment is covered
under the Act.”
…4…
…4…
We would submit that if our
humble request is accepted and the bonus paid under the Act the beneficiaries
would be only less than fifty employees and the financial commitment will also
be very meagre, but at the sametime ,implementation of the provision of the Act
in its true spirit will rejuvenate the morale of the employees and facilitate
efficient , faithful and loyal service to
the Board.
Thanking you,
Yours faithfully,
General Secretary.
Copy to the
Director/Finance/Tangedco
Copy to the
Secretary/Tangedco
Copy to the Chief
Engineer/Personnel/Tangedco
Copy to the Legal
Advisor/Tangedco
Copy to the Industrial
Relations Advisor/Tangedco.
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