Retired AFC Employees Win Supreme Court Battle for Higher Gratuity Payout
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...