In Brief
This case concerns whether an employer (Sri Ramnarayan Mills Ltd) could add "break in service" as a new ground of punishment in its Certified Standing Orders. The Labour Court and High Court rejected the amendment, holding it would unfairly penalize employees for even brief absences, deprive them of gratuity benefits, and undermine the Payment of Gratuity Act. The Supreme Court upheld the rejection, finding that existing punishment grounds were adequate, the proposed amendment would enable arbitrary employer action and cause employee harm, and would conflict with the protective purpose of gratuity legislation designed to benefit workers.
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