#gratuity payment

The Allahabad High Court has ruled that public employers cannot delay payment of gratuity, leave encashment, or pending salary to retired employees due to financial constraints. The order mandates full payment within three months, with interest at bank rate if no specific provision exists, reinforcing that statutory benefits are non-negotiable rights, not discretionary payouts.

The Madhya Pradesh High Court ruled that employers must pay 4% per annum interest on delayed gratuity payments, even if the employee's qualifications are later challenged. The court held that once an employee is allowed to work until superannuation, disputes over qualifications cannot justify withholding statutory benefits, reinforcing employer liability for delayed payments under the Payment of Gratuity Act.

MP High Court mandates inclusion of past service periods in gratuity calculations, relying on the Supreme Court's Netram Sahu precedent. The State must decide the claim within 45 days, ensuring payment with applicable interest if entitled, or provide written reasons for denial.

Calcutta High Court clarifies that principal employers under the Payment of Gratuity Act, 1972, are not vicariously liable for gratuity payments to contract workers unless a direct employer-employee relationship exists. The ruling rejects judicial expansion of liability via the Contract Labour Act, reinforcing statutory interpretation over judicial precedent.

Telangana High Court rules that undue delay in releasing admitted retiral benefits-including gratuity, pension, and GPF arrears-violates constitutional rights under Articles 14, 16, and 21. The state must disburse dues within six weeks or pay 10% interest, reinforcing that tokenized dues are enforceable entitlements, not mere administrative formalities.

Telangana High Court rules that undue delay in releasing admitted commutation and gratuity payments post-finalization amounts to a violation of Articles 14, 16, and 21. The court directed the state to release payments within six weeks, failing which a 10% interest penalty applies. This sets a binding precedent for timely disbursal of retiral benefits to retired government employees.

Punjab and Haryana High Court holds that retiral benefits cannot be withheld if no departmental or criminal proceedings were pending at the time of retirement.