SC - employees of the local bodies like Municipalities are entitled for gratuity under Payment of Gratuity Act, 1972

The Supreme Court has held that the employees of the local bodies like Municipalities are entitled for gratuity under Payment of Gratuity Act, 1972. The bench comprising Justice Mohan M. Shantanagoudar and Justice Hemant Gupta upheld Allahabad High Court judgments while upholding appeals filed by Kanpur and Gorakhpur Municipalities. The High Court had rejected the contention of the Municipalities that their employees are entitled to the gratuity in terms of the Retirement Benefits and General Provident Fund Regulations, 1962 framed under Section 548 of the Uttar Pradesh Municipal Corporation Act, 1959.
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