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TMI Blog1966 (11) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... facts in all these cases. Suffice it to state that the facts in C.A. No.2784/80 are sufficient for disposal of the common controversy. Admittedly, the appellants have taken overtime work from their existing employees. The employees had done work during the stipulated working time and thereafter they were asked to perform overtime work which they did and accordingly, the overtime rate of wages was paid in terms of the agreement between the appellants and the workmen. Therefore, the question has arisen; whether absence of stipulation for payment of the overtime wages in the original contract of employment, would take away such remuneration paid towards the overtime work from the definition of the word `wages' within the meaning of Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o contract between the appellants and the workmen to pay the overtime wages. It is not obligatory for the appellants to offer overtime wages nor is it obligatory for the employees to work overtime. In the absence of such mutual obligations under a contract, it cannot be considered to be "wages" within the meaning of Section 2(22) of the Act. Shri Sampath further elaborated spinning that in the light of statutory operation, unless there is any agreement in writing, it cannot be construed to be an implied contract. Since it is not obligatory for the employees to work, remuneration paid towards overtime work amounts to mutual payment not as part of wages but as remuneration for services rendered outside the contract of employment of the employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire his entered into a contract of service; and include any person employed for wages on any work connected with the administration of the factory or establishment or any part, department or branch thereof or with the purchase of raw materials for, of the distribution or sale of the products of the factory or establishment, *[or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961, or under the standing orders of the establishment; but does not include- (a) any member of the Indian naval, military or air forces; or (b) any person so employed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... until the end of that period. It would thus be seen that the Legislature has taken care to bring the employer within the net of beneficial provisions of the Act. Employee whose remuneration does not exceed the prescribed remuneration by the Central Government for a month or any time after the beginning of the contribution period, will be governed by the provisions of the Act. In other words, from the exclusion of the overtime work, in computation of the remuneration to the workmen, it does appear that the Legislature intended not to exclude employee who receives overtime wages from the purview of the Act though he did overtime work and had received remuneration. On the other hand, it would appear that the Legislature recognised the fact of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ested that all other categories which are not excluded, fall within the inclusive wider definition of `wages'. The Legislature by defining `employee', having had the knowledge of the payment of the remuneration for overtime work done by the employee and having excluded it in Section 2(9), the omission thereof in the definition of Section 2(22) excluding items A to D, would be eloquent and meaningful. Whatever remuneration, paid or payable for overtime work, forms wages under an implied term of the contract. The object thereby is clear that the overtime work done by the employee is an implied contract to do overtime and the remuneration paid therefore does form part of the wages under Section 2(22). Concomitantly, the employer is enj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only illustrative and tends to express the wide meaning and import of the word `wages' used in the Act. It was held therein that HRA, Night, Shift Allowance, Heat, Gas and Dust allowance, incentive allowance are wages within the meaning of Section 2(22) of the Act. The facts in this case squarely fall within the above ratio laid by this Court. When the admitted position is that an employee has done the overtime work and received or is due to receive remuneration towards the work done for his rendering service, necessarily, it is a wage paid or payable by virtue of the implied contract. The contract of employment is entered into only at the initial entry into the service. In the course of the employment, as and when the employer finds th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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