Deemed varsities should pay bonus’
Tribunal rules varsities are profit-making institutions
Noting that ‘deemed to be universities’ cannot be considered as a
non-profit making institution for the purpose of exempting them from
paying bonus to their employees, the Industrial Disputes Tribunal,
Chennai, has directed Sathyabama University, Chennai, to pay bonus to
the drivers and technicians employed in the institution as per the
provisions of the Motor Transport Employees Act.
The President of the tribunal A. Kanthakumar passed the order on a plea moved by Pudhiya Jananayaga Vagana Ottunargal Matturm Techniciangal Union.
According to the petitioner, its members have been working in the transport department of the university continuously for several years, and hence, they are entitled for bonus every year as per the Motor Transport Employees Act.
The petitioner added that the university is collecting fee for the transport services provided to its students and teachers and are making huge profit; hence, they are liable to pay bonus to the employees.
Minority institution
Opposing the contention, the university submitted that it is a minority non-profit making institution and is exempted from Acts such as the Motor Transport Employees Act.
“The Payment of Bonus Act, 1965, applies only to factory and other establishments in which 20 or more persons are employed. The Act exempts universities and educational institutions from the provisions of the Act,” the management said.
Refusing to concur with the submissions, the Industrial Disputes Tribunal made it clear that the universities are profit-making institutions and such exemptions cannot be provided to them.
The President of the tribunal A. Kanthakumar passed the order on a plea moved by Pudhiya Jananayaga Vagana Ottunargal Matturm Techniciangal Union.
According to the petitioner, its members have been working in the transport department of the university continuously for several years, and hence, they are entitled for bonus every year as per the Motor Transport Employees Act.
The petitioner added that the university is collecting fee for the transport services provided to its students and teachers and are making huge profit; hence, they are liable to pay bonus to the employees.
Minority institution
Opposing the contention, the university submitted that it is a minority non-profit making institution and is exempted from Acts such as the Motor Transport Employees Act.
“The Payment of Bonus Act, 1965, applies only to factory and other establishments in which 20 or more persons are employed. The Act exempts universities and educational institutions from the provisions of the Act,” the management said.
Refusing to concur with the submissions, the Industrial Disputes Tribunal made it clear that the universities are profit-making institutions and such exemptions cannot be provided to them.
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