Kerala High Court, in Sadhoo Beedi Enterprises vs. The Controlling Authority & Anr. [WP(C) NO. 36274 OF 2024], rejected the employer’s claim to pay gratuity in 12 installments. The court held that gratuity is a lump sum payment meant to serve as a retirement or terminal benefit, ensuring immediate financial support to the employee upon retirement or termination. Hence, paying gratuity in installments would defeat the purpose of the Gratuity Act.
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