An employee who resigns or opts for voluntary retirement is entitled to gratuity under the Payment of Gratuity Act, 1972, provided he has completed at least five years of continuous service, the Supreme Court observed in Ashok Kumar Dabas (Dead Through Legal Heirs) v. Delhi Transport Corporation [2025 INSC 1404].
In this case the Supreme Court declared that the Appellant’s legal heirs are entitled to payment of gratuity in terms of Section 4 of the Payment of Gratuity Act, 1972.
The Supreme Court added that gratuity cannot be denied to an employee merely because they resigned from service
The Section 4 of the Payment of Gratuity Act, 1972 states “an employee who had rendered not less than five years of service will be entitled to payment of gratuity, regardless of the fact that he had retired or resigned from service.”
