What is the eligibility criteria of gratuity?
I have worked for 4 years and 10 months. As per the various references and particularly as per MADRAS HIGH COURT judgement, employee is eligible for Gratuity. However, kindly prove guidance with respect to the new Judgement by M/S ALVAS INSTITUTE OF ENGINEERING AND TECHNOLOGY vs The State Of Karnataka on 28 June, 2022. Which Judgement prevails and why?
The Supreme Court of India has held that the Madras High Court judgment in the case of M. Rajagopal vs. Union Bank of India (2014) is no longer good law. In the recent case of M/s Alvas Institute of Engineering and Technology vs. The State of Karnataka (2022), the Supreme Court held that the Payment of Gratuity Act, 1972 (the Act) clearly states that an employee is eligible for gratuity only after completing 5 years of continuous service. The Court further held that the Madras High Court judgment was wrongly decided and should not be followed. Contact us for further enquiry.
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