{"id":213185,"date":"2019-04-03T17:46:19","date_gmt":"2019-04-03T12:16:19","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=213185"},"modified":"2019-04-05T10:39:04","modified_gmt":"2019-04-05T05:09:04","slug":"213185","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/03\/213185\/","title":{"rendered":"Payment of Gratuity Act applies to employees of the local bodies"},"content":{"rendered":"

Supreme Court<\/strong>: In the case where the employees of Municipal Corporation governed by the Uttar Pradesh Municipal Corporation Act, 1959 claimed gratuity under the Payment of Gratuity Act, 1972, the bench of MM Shantanagoudar and Hemant Gupta<\/strong>, JJ held that liberal payment of gratuity is in the interest of the employees, thus, the gratuity would be payable under the Payment of Gratuity Act.<\/em><\/span><\/p>\n

Court noticed that the Payment of Gratuity Act is applicable to<\/span><\/p>\n

(1) every factory, mine, oilfield, plantation, port and railway company;<\/p>\n

(2) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, the said provision has two conditions, viz.<\/p>\n

(i) a shop or establishments within the meaning of a State law and<\/p>\n

(ii) in which ten or more persons are employed; and<\/p>\n

(3) the establishments or class of establishments which Central Government may notify.<\/p>\n

The Court, hence, said that in terms of the above said Section 1(3)(c) of the Act, the Central Government has published a notification on 08.01.1982 and specified Local Bodies in which ten or more persons are employed, or were employed, on any day of the preceding twelve months as a class of establishment to which this Act shall apply. It, therefore, held,<\/p>\n

\n

\u201cSuch notification makes it abundantly clear that the Act is applicable to the local bodies i.e., the Municipalities. Section 14 of the Act has given an overriding effect over any other inconsistent provision in any other enactment. \u2026 In view of Section 14 of the Act, the provision in the State Act contemplating payment of Gratuity will be inapplicable in respect of the employees of the local bodies.\u201d<\/p>\n<\/blockquote>\n

[Nagar Ayukt Nagar Nigam, Kanpur v. Sri Mujib Ullah Khan, 2019 SCC OnLine SC 462<\/b><\/a>, decided on 02.04.2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Supreme Court: In the case where the employees of Municipal Corporation governed by the Uttar Pradesh Municipal Corporation Act, 1959 claimed gratuity <\/p>\n","protected":false},"author":121,"featured_media":154914,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,9],"tags":[9081,34730,29627,29796],"class_list":["post-213185","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-gratuity","tag-local-bodies","tag-payment-of-gratuity","tag-service-laws"],"yoast_head":"\nPayment of Gratuity Act applies to employees of the local bodies | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/03\/213185\/\" 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2021","format":false,"excerpt":"Supreme Court: The Division Bench of Hemant Gupta and A.S. Bopanna, JJ., addressed whether the 2010 amendment of Payment of Gratuity Act 1972 is retrospective. In the instant matter, Jharkhand High Court\u2019s decision has been challenged whereby the claim of the appellants to declare the applicability of Payment of Gratuity\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":375622,"url":"https:\/\/www.scconline.com\/blog\/post\/2026\/02\/13\/section-2e-of-payment-of-gratuity-act-not-apply-heavy-water-plant-employees-sc\/","url_meta":{"origin":213185,"position":1},"title":"Section 2(e) of Payment of Gratuity Act doesn’t apply to Central Govt. employees holding Civil Posts: Supreme Court","author":"Ritu","date":"February 13, 2026","format":false,"excerpt":"\u201cThe employees fall within the exclusionary clause of Section 2(e) of the PG Act. The result of such exclusion is that Sections 5 and 14 are not attracted in deciding on the applicability of the PG Act to the employees of HWP\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Section 2(e) of Payment of Gratuity Act","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/02\/Section-2e-of-Payment-of-Gratuity-Act.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/02\/Section-2e-of-Payment-of-Gratuity-Act.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/02\/Section-2e-of-Payment-of-Gratuity-Act.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2026\/02\/Section-2e-of-Payment-of-Gratuity-Act.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":302541,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/09\/27\/agreement-cannot-override-statutory-gratuity-payment-obligations-under-payment-of-gratuity-act-1972-cal-hc-scc-blog\/","url_meta":{"origin":213185,"position":2},"title":"Agreement\/Settlement cannot override statutory Gratuity payment obligations under Payment of Gratuity Act, 1972: Calcutta High Court","author":"Ritu","date":"September 27, 2023","format":false,"excerpt":"The Court held that the contradiction between agreement and provisions of the Payment of Gratuity Act, 1972, rendered the agreement unenforceable in terms of payment of gratuity.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":294279,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/06\/09\/determination-of-gratuity-from-date-termination-of-employment-kerala-high-court\/","url_meta":{"origin":213185,"position":3},"title":"Gratuity determined as per date of termination of employment, not the date of sanction or actual disbursement: Kerala High Court","author":"Ridhi","date":"June 9, 2023","format":false,"excerpt":"Kerala High Court suggested the petitioner to choose between Payment of Gratuity Act, 1972 and Kerala State Housing Board Employees' (Pension and other Retirement Benefits) Regulations, 1990 for claim of gratuity or DCRG, since he cannot have gratuity under one with the ceiling limit payable under another Act.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"kerala high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/kerala-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/kerala-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/kerala-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/kerala-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":211692,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/09\/sc-fixes-its-january-7-verdict-teachers-can-now-claim-gratuity-under-payment-of-gratuity-act\/","url_meta":{"origin":213185,"position":4},"title":"SC \u2018fixes\u2019 it\u2019s January 7 verdict; Teachers can now claim gratuity under Payment of Gratuity Act","author":"Prachi Bhardwaj","date":"March 9, 2019","format":false,"excerpt":"Supreme Court: The Bench of Abhay Manohar Sapre and Indu Malhotra, JJ has held that pendency of any writ petition by itself does not affect the constitutionality of a Statute. It said: \u201cIt is only when the Court declares a Statute as being ultra vires the provisions of the Constitution\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":156104,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/09\/12\/govt-to-introduce-the-payment-of-gratuity-amendment-bill-2017-in-parliament\/","url_meta":{"origin":213185,"position":5},"title":"Govt. to introduce the Payment of Gratuity (Amendment) Bill, 2017 in Parliament","author":"Saba","date":"September 12, 2017","format":false,"excerpt":"The Union Cabinet has given its approval for introduction of the Payment of Gratuity (Amendment) Bill, 2017 in Parliament. 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