STATE BANK OF HYDERABAD REP BY MANAGING DIRECTOR HEAD OFFICE GUNFOUNDRY HYDERABAD Vs. REGIONAL LABOUR COMMISSIONER (CENTRAL) AND APPELLATE AUTHORITY UNDER PAYMENT OF GRATUITY ACT ATI CAMPUS

JUDGEMENT

(1.) BOTH these appeals can be conveniently dealt with and decided as they arise out of common set of facts.

(2.) WRIT Appeal No.847 of 2004 is preferred by the State Bank of Hyderabad (henceforth referred to as Bank), challenging the correctness of the Judgment passed by the learned single Judge dismissing the writ petition preferred by it. W.A.No.866 of 2004 was preferred by the Bank against the Judgment rendered in W.P.No.12354 of 1997 preferred by the employee.

(3.) IT is not in dispute that, as per Regulation 5 of State Bank of Hyderabad (Payment of Gratuity to Employees) Regulations 1960, an employee shall be paid gratuity equal to one months pay for each completed year of service for the first 30 years subject to maximum of 15 months pay or Rs.24,000/- whichever is less and in addition, a sum equal to half months pay in respect of each completed year of service in the bank in excess of 30 years. Hence, for the first 30 years of service, bank has to calculate 15 months wages at the first instance. If it works out to less than Rs.24,000/- the said amount should be taken into reckoning. If on the other hand if it exceeds Rs.24,000/- then it should be confined to Rs.24,000/-. Thereafter, for each year of service rendered beyond 30 years, half months wages have to be paid. The most vital component, for calculation of amount of gratuity payable to an employee, is the "monthly wages".