Employee welfare - The Legal Chamber

The Supreme Court held that under the AFC’s Staff Regulations, the gratuity ceiling for employees is linked to notifications issued by the State Government. Consequently, AFC employees are entitled to the enhanced gratuity limit prescribed by the Government of Assam, as the regulations incorporate such external ceilings for employee benefit. Facts Of The Case: The Assam Financial Corporation Limited (AFC) appealed against a High Court judgment favouring its retired employees. The employees, who retired between 2018–2019, had been paid gratuity under AFC’s internal regulations, which had a ceiling of Rs. 7 lakhs as per a 2012 office order. They contended that they were entitled to a higher gratuity ceiling as per the Payment of Gratuity Act, 1972, which was aligned with the enhanced...

The Supreme Court ruled that aided school teachers in Maharashtra are governed by the Maharashtra Civil Services (Pension) Rules, 1982 (under Article 309) for gratuity, not the Payment of Gratuity Act, 1972. The Court held that since their pay and service conditions are state-regulated, they fall under the more beneficial state scheme, which includes pension and death-cum-retirement gratuity (DCRG). Legal heirs need not produce a heirship certificate if nominated, but must submit an indemnity undertaking. Interest at 7% was mandated for delayed payments. Facts Of The Case: The petitioner, Vikram Ghongade, is the son of a deceased teacher employed at an aided school in Maharashtra. His mother passed away while in service, and he sought gratuity under the Payment of Gratuity Act, 1972. How...

Tag: Employee welfare

Retired AFC Employees Win Supreme Court Battle for Higher Gratuity Payout

Teachers’ Gratuity Rights Clarified: Supreme Court Decides Between State Rules and Payment of Gratuity Act