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LIFE INSURANCE CORPORATION (MODIFICATION OF SETTLEMENTS) ACT, 1976
72 of 1976
29th May, 1976
The provisions of the Payment of Bonus Act, 1965 do not apply to the employees employed by the Life Insurance Corporation of India. However, the Corporation has, as a matter of practice, been paying bonus to its employees. The bonus to Class I and Class II employees is being paid in pursuance of agreements between the Corporation and such employees. The bonus to Class III and Class IV employees is being paid under the terms of settlement arrived at between the Corporation and such employees from time to time. In terms of the settlement arrived at between the Corporation and its Class III and Class IV employees on 24th January, 1974 under the Industrial Disputes Act, 1947, which is in force up to the 31st March, 1977, bonus is payable by the Corporation to its Class III and Class IV employees at the rate of fifteen per cent of their annual salary without any maximum limit. 2. It is proposed to set aside, with effect from the 1st April, 1975, these provisions of the settlement arrived at between the Corporation and its Class III and Class IV employees on 24th January, 1974 to enable the corporation to make ex gratia payments to such employees at the rates determined on the basis of the general Government policy for making ex gratia payments to the employees of the non-competing public sector undertakings. 3. The Bill seeks to achieve the above object.- See Gaz. of India, 1-4-1976, Pt. II, Section 2, Ext., p. 817.
An Act to provide for the modification of the settlements arrived at between the Life Insurance Corporation of India and their workmen. Be it enacted by Parliament in the Twenty-seventh Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE
This Act may be called the Life Insurance Corporation (Modification of Settlements) Act, 1976.
SECTION 02: DEFINITIONS
In this Act, unless the context otherwise requires,-
(a) "Corporation" means the Life Insurance Corporation of India established under section 3-of the Life Insurance Corporation Act, 1956;
(b) "salary" means basic pay and includes-
(i) special pay, if any;
(ii) dearness allowance; and
(iii) additional dearness, allowance;
(c) "settlements" means,-
(i) the settlement which was arrived at between the Corporation and their workmen on the 24th day of January, 1974, under section 18 -, read with clause (p) of section 2-, of the Industrial Disputes Act, 1947 -; and
(ii) the settlement which was arrived at between the Corporation and their workmen on the 6th day of February, 1974, under section 18-, read with clause (p) of Section 2-, of the said Act and in respect of the terms of which there was no approval as provided for in sub-clause (2) of clause 12 thereof.
SECTION 03: MODIFICATION OF SETTLEMENTS
Notwithstanding anything contained in the Industrial Disputes Act, 1947, the provisions of each of the settlements, in so far as they relate to the payment of an annual cash bonus to every Class III and Class IV employee of the Corporation at the rate of fifteen per cent of his annual salary, shall not have any force or effect and shall not be deemed to have had any force or effect on and from the 1st day of April, 1975.
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