GratuityContinuous serviceSupreme Court of India

Surendra Kumar Verma v Central Government Industrial Tribunal-cum-Labour Court

(1980) 4 Supreme Court Cases 44319801 min read
The case in brief30-second read
Facts
Worker claimed gratuity under the Payment of Gratuity Act, 1972. Employer disputed continuous service: argued breaks in employment prevented the 5-year requirement.
Issue
Whether the 240-day deeming provision for continuous service under the Payment of Gratuity Act should be strictly or liberally construed.
Held
The 240-day deeming provision must be liberally construed.
Principle
The 240-day deeming provision for continuous service under the Payment of Gratuity Act must be liberally construed. An employee who has actually worked 240 days is deemed to have continuous service for that year.
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Facts

  • Worker claimed gratuity under the Payment of Gratuity Act, 1972
  • Employer disputed continuous service: argued breaks in employment prevented the 5-year requirement
  • Worker had actually worked 240 days in each of the relevant years
  • Section 2A of the Act deems a worker to have continuous service if actually worked 240 days (190 for mines/seasonal)

Issue

  1. Whether the 240-day deeming provision for continuous service under the Payment of Gratuity Act should be strictly or liberally construed.

Held

  • The 240-day deeming provision must be liberally construed
  • If a worker has actually worked 240 days in a year, that year counts as one year of continuous service
  • Breaks, interruptions, or gaps do not defeat the deeming provision
  • The Gratuity Act is beneficial legislation; must be interpreted to advance worker welfare

Ratio decidendi

The 240-day deeming provision under the Payment of Gratuity Act must be liberally construed. An employee who actually worked 240 days in a year is deemed to have continuous service for that year, regardless of breaks in employment.

Exam use

How to use it in an answer

  • Authority for liberal construction of the 240-day rule
  • Use in gratuity eligibility disputes
  • Key line: "In Surendra Kumar Verma (1980), the Supreme Court held that the 240-day deeming provision for continuous service must be liberally construed in favour of the worker."

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Citation

Surendra Kumar Verma v. Central Government Industrial Tribunal-cum-Labour Court (1980) 4 Supreme Court Cases 443

Reported: (1980) 4 SCC 443; verified from chapter content. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.