Hyderabad: The Hyderabad HC has ruled that the controlling authority under Payment of Gratuity Act, 1972 cannot maintain the applications filed by scores of ECIL employees who retired prior to May 24, 2010, claiming enhanced gratuity benefits.
Justice A Ramalingeswara Rao was allowing a petition by ECIL seeking to declare the procedure adopted by the controlling authority in entertaining the application of the Payment of Gratuity Act 1972 as illegal.
ECIL contended that the 317 employees who retired prior to May 24, 2010, were not entitled to enhanced gratuity when they were paid Rs 3.5 lakh as per the rules in existence on the date of their retirement. The enhancement in the gratuity to Rs 10 lakh with effect from May 24, 2010, cannot be extended to such retired employees.
