Kundanmals Industries v. Commissioner of Labour and Others – sllr 1994 volume 3 page 020

In Kundanmals Industries (petitioner) v. Commissioner of Labour and Others (respondents), the court addressed whether the Industrial Court’s award of a bonus based on company profitability satisfied the legal standard for an ex gratia payment rather than a contractual wage. The court held that bonus payments must be grounded in clear evidence of profit for the relevant year and that such bonuses are generally discretionary and ex gratia in nature unless there is an express or implied agreement to the contrary. Relying on established principles under the Industrial Disputes Act, it was found that the evidentiary basis for profit was insufficient, as findings were based predominantly on written submissions rather than oral evidence at the inquiry. The court accordingly quashed the bonus awar