Pay Enhanced Gratuity to Retired Employees, HC Directs ECIL

 Hyderabad: The division bench of the Telangana High Court on Monday made it clear that Electronics Corporation of India Limited (ECIL), Hyderabad, was liable to pay the enhanced gratuity amount to its employees, who had retired from service between January 1, 2007, and May 2010.

The bench, comprising Chief Justice Alok Aradhe and Justice J. Sreenivas Rao, dismissed the appeal filed by ECIL, challenging the single judge orders directing it to pay Rs 10 lakh gratuity to employees who had retired in the period. Prior to January 1, 2007, the ceiling was Rs 3.5 lakh.

EClL’s contention was that payment of enhanced gratuity ceiling from 01-01-2007 was not recommended by the Board. The issue that is required to be considered was whether the enhanced ceiling of gratuity at Rs  10 lakh was to be paid from 01-01-2007 as per the guidelines finalised during meeting convened by the department of public enterprises on 26-11-2008 or from 24-05-2010, the date when the amendment to the Gratuity Act came into force. It had paid `3.5 lakh to retired employees as gratuity.

Around 295 retired employees approached the deputy labour commissioner in Hyderabad on the matter. The authority directed ECIL to pay the remaining Rs 6.5 lakh gratuity amount along with 10 per cent interest to each pensioner. When the orders were challenged by ECIL, the single bench court was not inclined to interfere with the orders of the deputy labour commissioner.

Aggrieved by the orders of the single bench, the ECIL filed an appeal before the division bench of the Telangana High Court, which also dismissed the appeal.

Those who retired between 2007 and 2010 denied enhanced amount