Kerala High Court, in Thankamma and Ors vs. Regional Joint Labour Commissioner (WP(C) 24720/ 2025), ruled that under the Payment of Gratuity Act, 1972 ( “Gratuity Act”), a factory manager may be deemed the lawful employer for gratuity proceedings, even in the absence or after the death of the actual employer. The manager contended that the gratuity notice issued after the employer’s death was invalid as it was addressed to him. Rejecting this, the Court held that serving notice on the manager, who exercised overall control of the establishment, satisfied statutory requirements. Referring to Section 2(f)(iii) of the Gratuity Act, the Court emphasised that “employer” includes any person entrusted with overall control of the establishment, such as a manager or managing director. Consequently, the Court upheld the gratuity award and directed that the gratuity amount, along with applicable interest, be released to the retired employee.
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