Employees who complete five years of service are eligible for gratuity: SC

NEW DELHI: The Supreme Court has ruled that employees who complete five years of service are eligible for gratuity. The judgment comes as relief for employees working in institutions covered under the Payment of Gratuity Act. Even if an employee resigns or takes voluntary retirement after completing five years, they are still entitled to gratuity.

A conductor who resigned from the Delhi Transport Corporation (DTC) had been denied gratuity. After his death, his family filed a petition. A bench of Justices Rajesh Bindal and Manmohan held that gratuity must be paid and directed the DTC to hand over the amount to the family. The court also clarified that the Payment of Gratuity Act applies to DTC.