During Resignation The Last Drawn Salary Will Be Considered For Calculating Gratuity If The Employee Is Transferred Among Institutions Under The Same Management: Bombay High Court

Posted On - 16 February, 2024 • By - King Stubb & Kasiva

The Hon’ble Bombay High Court in Writ Petition No. 11864 of 2019 held that there is nothing on the record to prove that there was termination/cessation of services when the employee resigned. The employee filed an application for gratuity as it was not paid to him. The Controlling Authority directed the employer to pay gratuity. The petitioner approached the Hon’ble High Court after the Appellate Authority bifurcated payment of gratuity between the two institutions where the employee was transferred. The Hon’ble High Court held that there was continuity in the two spells of service, it determined that gratuity must be calculated based on last drawn salary of the employee. The Hon’ble High Court also held that as there is continuity in service, the entire payment of gratuity amount must be made by the employer from whom the employee has last drawn salary.