Madhya Pradesh HC in State of Madhya Pradesh & Ors. vs. Shiv Nath Singh Kushwaha & Ors. (W.P. No. 31272 of 2024)on May 6, 2025 dismissed the state Government’s contention that its employees were not governed by the Payment of Gratuity Act, 1972 (“Gratuity Act“). The Court held that it is a settled legal position that when Panchayat employees are absorbed into the state Government’s teaching cadre, their service conditions continue without interruption. Since these Panchayat employees were governed by the Gratuity Act under the applicable service rules prior to absorption, they would retain continuity in service and remain entitled to gratuity under the Gratuity Act even after joining the state Government.
Stay connected with us on social media platforms for instant updates click here to join our LinkedIn, Twitter & Facebook
