Gratuity and Bonus — Landmark Judgments

Landmark Judgments

Hindustan Times Ltd. v. Union of India

2016

This landmark Supreme Court judgment clarified the definition of 'wages' for the purpose of calculating gratuity under the Payment of Gratuity Act, 1972. The court held that…

Indian Hume Pipe Co. Ltd. v. Workmen

1959

Though an older judgment, this case is foundational for understanding the nature of bonus. The Supreme Court established the 'profit-sharing bonus' principle, stating that bonus…

Union Bank of India v. C.G. Ajay Babu

2018

This Supreme Court judgment reiterated the strict interpretation of forfeiture clauses under the Payment of Gratuity Act, 1972. The Court held that gratuity can only be forfeited…