In Brief
An employee worked as a daily wager for 22 years before being regularized for 3 years and retired after 25 years total service. He claimed gratuity under the Payment of Gratuity Act, 1972, which was initially allowed by the Controlling Authority and Appellate Authority. The High Court reversed this, holding that he could not count his pre-regularization service as a daily wager. The Supreme Court allowed his appeal, holding that once services are regularized, the employee can count the entire period of continuous service (including the daily wager period) towards the gratuity entitlement, provided the statutory five-year continuous service requirement is met. The Court distinguished the Umadevi case and emphasized that welfare legislation should protect long-serving employees.
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