Case Law Analysis
|Karnataka High Court
Section 4 Payment of Gratuity Act | 5-Year Continuous Service Mandate Absolute: Karnataka HC Quashes Gratuity Orders for Short-Term Employees
Karnataka High Court reaffirms that Section 4 of the Payment of Gratuity Act, 1972, strictly requires a minimum of 5 years of continuous service for gratuity eligibility, leaving no room for administrative discretion. The ruling sets aside gratuity orders favoring an employee with only 4 years and 9 months of service, reinforcing statutory compliance over equitable considerations for employers and employees alike.