The Supreme Court on Tuesday (December 9) held that 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.

A bench of Justice Rajesh Bindal and Justice Manmoha n directed the Delhi Transport Corporation to pay gratuity to the family of the Appellant-employee (now dead), who had served about 30 years and resigned due to family reasons. He was denied gratuity and other retirement benefits such as pension and leave encashment after resigning from the service.

While upholding the High Court's decision to not grant a pension as the Appellant resigned from the services forfeiting his past service as per Rule 26 of the Central Civil Services (Pension) Rules

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