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Dear Sir/Madam, I humbly request your kind guidance/clarifications on the following queries: In Rajasthan State Road Transport Corporation Ltd. & Ors. v. Smt. Mohani Devi & Anr., decided on 15 April 2020, the Supreme Court held that the expression “termination of employment” under Section 4(1) of the Gratuity Act, 1972 is of wide import and includes resignation. As per this judgment, does the order also apply to Section 4(1)(a), (b), and (c)? Please confirm my understanding. Is a gratuity claim under Section 4(1)(c) — death or disablement due to accident or disease — applicable in cases of resignation by the employee, or can this provision be invoked only when the employer terminates the employee from service?
In RSRTC v. Mohani Devi (2020), the Supreme Court held that “termination of employment” under Section 4(1) of the Gratuity Act includes resignation, making gratuity payable under Section 4(1)(b). However, Section 4(1)(c) applies only where service ends due to death or disablement, not resignation. Thus, resignation cannot invoke Section 4(1)(c). For further legal assistance contact us on our helpline number.