The Finance Co. Ltd vs Koddippili – sllr 2005 volume 3 page 281

In The Finance Co. Ltd v. Koddippili, the court addressed whether the payment and acceptance of gratuity upon an initial retirement date disrupts the continuity of employment, thereby affecting the calculation of gratuity under the Payment of Gratuity Act, No. 12 of 1983, when the employee continued work under a contract extension. It was held that the uninterrupted extension of employment, granted prior to the initial retirement date and involving continued service in the same capacity with regular salary increments, constituted continuous employment. The acceptance of gratuity at the first retirement point did not terminate service; instead, the employee qualified for gratuity based on the entire period of employment, without a break. The court reaffirmed that service continuity, as reco