Gratuity: Updates & Case

The Payment of Gratuity Act does not differentiate between a regular employee and a daily wage employee, the Karnataka HC observed while directing the state government to settle the arrears of a 75-year-old retired Group-D employee in relation to the period when he worked as a daily wager. Allowing the petition filed by Basavegowda, Justice M Nagaprasanna pointed out that the Supreme […]

The Gujarat High Court reiterated that under the provisions of Section 7 of the Payment of Gratuity Act, there is a clear mandate on the employer to pay gratuity within time and to pay interest on delay in payment of gratuity. A division bench of Justice Biren Vaishnav directed Sardar Patel University to pay gratuity of

The Supreme Court has held that mere exercise of option by an employee, to avail the benefit of extension of age of retirement to 60 years, could not operate against his entitlement to gratuity. The bench of Justices Dinesh Maheshwari and Vikram Nath in the present matter was hearing a special leave petition assailing Uttarakhand High Court’s

The Apex Court, vide its order dated December 15, 2020, in Steel Authority of India Limited vs. Raghbendra Singh & Ors, propounded that there does not exist any constraint regarding withholding an employee’s gratuity against the recovery of dues from such employee, including penal rent, which in the instant case pertained to the overstay by the

The Supreme Court has observed that 2010 amendment of Payment of Gratuity Act 1972 is not retrospective. As per the 2010 amendment, the upper-limit of amount of gratuity payable as per Section 4 of the Payment of Gratuity Act 1972 was increased as Rupees 10 lakhs from Rupees 3.5 lakhs. The appellants before the Supreme

The Allahabad High Court has said that under no circumstances can an employee’s gratuity be stopped. Even if the decree passed by the Court or in any other way proves the liability of the employee, gratuity cannot be attached to his reimbursement. This order was given by a division bench of Chief Justice Govind Mathur and Justice

The High Court of Karnatala has held that the payment of gratuity would not depend upon the employee filing an application before the employer demanding gratuity but it will have to be paid immediately on cessation of the employment. The gratuity will have to be paid immediately by the employer on cessation of employment in

The gratuity money of an employee can be withheld and forfeited for recovery of dues such as overstaying in official accommodation, the Supreme Court has ruled. A bench headed by justice Sanjay K Kaul held that there is no prohibition against recovering dues including penal rent — the rent with penalty for overstaying in official accommodation