Gratuity - a Right not Bounty
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The Supreme Court has ruled that, Gratuity is an inalienable right of an employee and not a bounty or reward that is offered by the management, A Bench of Justices S B Sinha and H S Bedi said that when a benefit is extended to a group of employees, the same cannot be denied to the other group of employees, if they were entitled to the benefit under the scheme.
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The Chairman or the other authorities can invoke the powers only as delegated to them under the relevant statute.
The dispute related to fixation of reduced gratuity to officers who had retired prior to August one, 1994. According to an order passed by the Chairman, those employees who retired prior to August one, 1994, were entitled to reduced gratuity based on the pay scale.
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