TMI Blog1959 (6) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... putes Act as meaning the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery or for any other reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched. To put it briefly, lay-off therefore means the failure, refusal or inability of an employer to give employment to his employee. There is an Explanation to this clause, which states: Every workman whose name is borne on the muster rolls of the industrial establishment and who presents himself for work at the establishment at the time appointed for the purpose during normal working hours on any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Legislature has drawn a distinction between wages and compensation. It was open to the Legislature to say that during the period of lay-off, a workman shall be paid wages calculated in the prescribed manner. But the Legislature has deliberately referred to the sum payable to a workman during the period of lay-off as compensation, thereby suggesting that the Legislature did not intend that it should be regarded as wages. Standing Order No. 17 of the Standing Orders settled by the Industrial Court under section 36(3) of the Bombay Industrial Relations Act, 1946, and which determines the relations between the petitioners and their employers, i.e., the second respondents, is as follows: Any operative played off under Order 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utes Act makes it a term of their employment that compensation shall be paid to them whenever they are laid-off. He has contended that the obligation to pay such compensation and the right to claim it arise under the terms of employment and that consequently it would be wrong to say that during the period of lay-off, the contract of employment does not subsist or is suspended, or that the relationship of master and servant ceases to exist. We do not think that it is necessary for us to express any definite opinion on this point in these cases. It is, however, clear that lay-off does not terminate or bring to an end the contract of employment. The employees continue to be on the muster-roll of the employer and they have to be reinstated as s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents are not to be regarded as wages. It is not necessary to refer to them. Leaving out of consideration, for the time being, clauses (a) to (e), which extend the meaning of the term wages, the term as defined in the main part of the definition means a payment, which must satisfy three conditions. Firstly, it must be remuneration. Secondly it must be payable, if the terms of employment are fulfilled. Thirdly, it must be payable in respect of employment or work done in such employment. The word remuneration ordinarily means any consideration, which a person receives for giving his services (See Stroud's Judicial Dictionary). It is, therefore, a payment made for services rendered. When no services are rendered and when in fact there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for lay-off, that is, on account or the failure or inability of the employer to provide work, cannot therefore be said to be remuneration. The payment is made not as consideration for work done or services rendered, but as compensation for temporary loss of employment. 3. Another requirement of a payment to fall within the term wages is that it must be in respect of employment or work done in such employment. The expression in respect of means attributable to (see Aser v. Seaford Court Estates Ltd., 1950 AC 508 at p. 526): or, if it is given a meaning, relating to or with reference to (see Tolaram Relumal v. The State of Bombay, (1955) 1 SCR 158 at p. 165: AIR 1954 SC 496 at p. 499)). The payment must, therefore, be attr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he work done by him. It is made payable in order to mitigate or reduce the hardship caused by reason of unemployment or temporary loss of employment. Consequently, it cannot be said to be a payment in respect of employment or work done in such employment. 4. As, therefore, compensation payable for lay-off is not remuneration and is also not payable to a worker in respect of his employment or work done in such employment, it is not wages within the meaning of this term given in the main part of the definition. In this view, it is not necessary to consider whether such compensation is payable by reason of the terms of employment being fulfilled. 5. Mr. Nargolkar has also contended that lay-off compensation will fall unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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