Workers' Entitlement To Bonuses: Overruling Charitable Trusts' Objections

In a judgment delivered in the matter of The Management of Worth Trust vs. The Secretary, Worth Trust Workers Union¹, the Supreme Court of India reiterated the rights of workers under the Payment of Bonus Act, 1965, by ruling that factories run by charitable trusts cannot deny bonuses to their workers. This decision is significant as it reinforces the principle that workers' entitlement to bonuses is a statutory right that cannot be circumvented by the nature of the establishment they work for.

Background of the Case

The case involved the WORTH Trust, initially established as a charitable institution under the Swedish Red Cross Rehabilitation Trust. Prior to 1985, the trust was involved in charitable activity, including the rehabilitation of leprosy-cured patients and other specially abled persons. Over time, the trust transitioned into a commercial venture, engaging in the manufacturing and sale of automobile parts and other equipment. Despite generating