SC on entitlelment of Gratuity U/s. 4(5) of Payment of Gratuity Act, 1972

BCH Electric Limited Vs Pradeep Mehra (Supreme Court) In a notable judgment in the field of gratuity law, the Supreme Court held that Section 4(5) of the Payment of Gratuity Act, 1972 will apply only when there are alternative options for the employee under the Act and under the terms of contract with the employee. The Court also held that the employee must taken either of the packages completely, and there cannot be any “combination” of terms under both the alternatives. This was in the case BCH Electric Limited vs Pradeep Mehra, where a bench comprising Justices U U Lalit and San...