Kerala High Court in Kerala State Co-Operative Bank Limited vs. S. Viswanathamallan W.P.C No. 18946/2020, On July 14, 2022, reiterated the settled principle that in order to get Section 4(5) of the Payment of Gratuity Act, 1972 (“Gratuity Act“) attracted, there must be better terms of gratuity available and extended to an employee ‘under any award or agreement or contract with the employer’ as against what has been provided for under and in terms of the Gratuity Act and thus when two choices are available, one under the provisions of the Gratuity Act and the other under such arrangement with the employer and if the latter offers better terms, the employee cannot be denied the right to receive those higher benefits.
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