Gratuity for workmen in non-seasonal employment is determined at 15 days per completed year of service, contrary to employer claims of 7 days for seasonal workers under the Payment of Gratuity Act.

JUDGMENT :

A. HARI HARANADHA SARMA, J.

Introductory:-

1. Feeling aggrieved by the dismissal of the Writ Petition in W.P.No.1461 of 2024 under orders dated 25.01.2024 by the learned Single Judge of this Court, the Writ Petitioner therein filed the present appeal.

Factual Matrix:

2. (i) Respondent Nos.3, 7 to 9, 14 to 21, 26 to 28, 34 to 42, 44 to 55 and 59 are said to be the workmen / N.M.Rs. The Controlling Authority under the Payment of Gratuity Act, 1972 and Assistant Commissioner of Labour, Eluru in P.G. Case No.5 of 2012 and batch, considered the case of the employees in the respective cases, as to payment of gratuity in terms of the Payment of Gratuity Act for a period of 15 days instead of 7 days for every completed period of service and passed orders in favour of the workmen under orders dated 28.05.2022, rejecting the ground of the employer that gratuity is payable at the rate of 7 days for every completed year of service treating the workmen as seasonal workers and adopting the principal that the gratuity payable at the rate of 15 days per year will apply but not that of seasonal employment, considering that the organisation in which the workmen served is a factory but not a seasonal employment.

(ii) Assailing the said orders, the employer filed an appeal in terms of terms of Payment of Gratuity Act before the Appellate Authority and Deputy Commissioner of Labour, Eluru.

(iii) Having suffered dismissal of the appeal and confirmation of the orders of the Controlling Authority / Original Authority, Writ Petition W.P.No.1461 of 2024 is filed.

(iv) The learned Single Judge of this Court dismissed the Writ at the admission stage observing that there is no necessity to issue notice to the respondent workmen, in view of the fact that the entitlement to be decided is not substantial and would range between Rs.13,000/- to Rs.23,000/- in respect of his employee and the total value involved itself is Rs.6,67,725/- as per the orders of the Original Authority by taking note of the difficulties of all the workmen in engaging an advocate appearing before the High Court and the financial implications involved thereon, while confirming the concurrent findings of the Original Controlling Authority i.e. Assistant Commissioner of Labour, dated 28.05.2022 and the orders of the Appellate Authority and Deputy Commissioner of Labour, Eluru, dated 05.11.2023.

(v) Questioning the orders of the learned Single Judge dated 25.01.2024 in the Writ Petition, the present appeal is filed.

Case of the writ petitioner / employer / appellant:

3. (i) Sub-section (2) of Section 4 of the Payment of Gratuity Act, 1972 is not meant for the workmen/unofficial respondents. Some of them died during the pendency of the claim. The legal representatives are also not brought on record.

(ii) As per the proviso to Sub-section (2) of Section 4 of the Payment of Gratuity Act, 1972, employees employed in seasonal establishments are entitled for gratuity is at the rate of ‘7’ days for each completed year of service. Whereas the entitlement claimed and confirmed at ‘15’ days for each completed year of service is erroneous. The workmen must have worked a minimum of 240 days per year continuously for five years for such entitlement. Therefore, the orders of Controlling Authority, Appellate Authority and in the Writ are unsustainable.

4. At the stage of admission and notice, the matter is heard.

5. Heard Sri Y.V. Anil Kumar, learned counsel for the appellant and the learned Government Pleader for Services-I. Perused the material available on record.

Arguments in the appeal:

For the appellant:

6. (i) The disposal of the Writ Petition without n