#Payment of Gratuity Act 1972

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.

The Himachal Pradesh High Court has held that appeals under Section 7(7) of the Payment of Gratuity Act, 1972 must be filed within 120 days-60 days statutory plus 60 days condonable delay-and any delay beyond this period renders the appeal non-maintainable. This reinforces that statutory limitation periods in special enactments like the Gratuity Act are strictly enforceable, affecting employers and beneficiaries alike in gratuity disputes.

Employees are entitled to 10% annual interest on delayed gratuity payments under Section 7(3) of the Payment of Gratuity Act, 1972, as per the Ministry of Labour notification. The Allahabad High Court ruled that employers must comply with this mandate, ensuring timely compensation for delayed payments.

The Allahabad High Court has ruled that service rendered as a daily wager must be included in gratuity calculations once the employee is regularized, aligning with the Supreme Court’s holding in Netram Sahu. This decision protects thousands of informal workers whose long-term service was previously disregarded, reinforcing that regularization erases the distinction between temporary and permanent tenure for statutory benefits.