Ceylon Cold Stores Ltd. v. Sri Nandalochana and Another – sllr 1989 volume 2 page 254

In the case between Ceylon Cold Stores Ltd. (Appellant) and Sri Nandalochana and Another (Applicants), the issue concerned whether gratuity is payable to an employee who resigns and has contributed to a Provident Fund, and the proper method for computing such gratuity before and after the enactment of the Payment of Gratuities Act, No. 12 of 1983. It was held that for employees who resigned prior to the Act, gratuity should be awarded at the rate of one quarter of a month’s salary per year of service, not at half a month’s salary as previously ordered, and employer contributions to the Provident Fund must be considered. The principle reaffirmed is that statutory and pre-Act rights regarding gratuity are distinct, and double benefits should be avoided. Previous Court of Appeal orders were s