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 Labour Law Update 


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Gratuity Act   1997-98


 

kothari industrial corporation

vs

appelate authority under gratuity act 1972 [1998 (I) lln-121 hc-ap-db]

in lallappa lingappas case [1981 illn-347] supreme court had held that gratuity is payable only for the years an employee puts in a minimum attendance of 240 days per year.  is this ruling still valid ?

held not valid as section 2a of the gratuity act has since been amended.  as per amended section 2a(I) for regular employees there should not be any minimum attendance test however the 240 test would be applicable to casual workers who are attracted by section 2A(2)

 

K. RAJENDRA PAI

VS

CANARA BANK [1988 (I) LLJ 577 HC-KER-SB]

AN EMPLOYEE REMOVED FROM SERVICE WAS NOT PAID GRATUITY ON THE GROUNDS THAT HIS REFUSAL TO VACATE THE QUARTERS AMOUNTED TO CAUSING LOSS TO THE COMPANY. IS THIS ACTION VALID.

GRATUITY CAN BE WITHHELD ONLY IN CIRCUMSTANCES LISTED IN SECTION 4(6). AS THE COMPANY HAS NOT ESTABLISHED THE ACTUAL LOSS. NO WITH HOLDING IS ALLOWED. TO PAY WITH 18% INTEREST.

 

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Gratuity Act   1999

 

 

 

 

management of ahilandeswari mills

vs

asst. labour commissioner (gratuity authority)1999(2)lln 262 [hc-mad]

section 2(c) of the gratuity act which defines continuous service does indicate that festival holidays and weekly holidays are to be included.  are such days to be reckonned for the 240 days test for eligibility under section 2(a)(2) ?

though such days are not specifically mentioned in the definition of continuous service, such days are to be included as the  cessation or non working on such days by the employee is not due to any fault of the employee.

 

 

 

air india ltd.

vs

appellate authority (payment of gratuity act 1972)

[1999 (81) flr 960 bom-hc-sb]

can recoveries or off-setting be done from the gratuity if the employee executes an agreement assigning his grauity to the company, say for claiming certain benefits ?

even if there is a perfectly valid agreement assigning the gratuity in favour of the company, it will be hit by section 14 of the act and the employer cannot off-set any dues from the gratuity payable to the employee except in contingencies falling under section 4(6)