Trustees of the Ceylon School for the Deaf and Blind vs. Commissioner of Labour and Others – sllr 2010 volume 2 page 095

The case between Trustees of the Ceylon School for the Deaf and Blind and the Commissioner of Labour and Others addressed the issue of whether a teacher’s gratuity should be calculated based on the last drawn salary, particularly when salary revisions occurred after retirement in the context of a contributory pension scheme. It was held that the teacher was entitled to gratuity based on the revised salary, reaffirming the principle that post-retirement salary adjustments, when derived from ongoing service entitlements, must be considered in gratuity calculations where contributory pension schemes exist. This decision relied on the interpretation of Sections 6(2) and 7 of the Payment of Gratuity Act, emphasizing that retirement benefits must reflect lawful salary revisions affecting service