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Supreme Court of India 2018-03-23 allowed

Netram Sahu vs State of Chhattisgarh & Anr

Bench: 2 — Abhay Manohar Sapre

In Brief

The appellant, employed as a daily wager for 22 years and later regularized as a regular employee for 3 years (total 25 years of service), claimed gratuity after retirement. The State resisted, arguing he worked only 3 years as a regular employee and thus lacked the 5-year continuous service requirement. The Supreme Court allowed the appeal, holding that once the State regularized the employee's services, the entire period of service—including the pre-regularization period—counts towards the continuous service requirement for gratuity. The Court rejected technical arguments and emphasized that gratuity is welfare legislation that the State should implement fairly and honestly.

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Labour and Employment Law Payment of Gratuity Act Service Conditions Regularization of Services Administrative Law

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