STRAW BOARD MFG. CO LTD. vs THE WORKMEN

The Supreme Court upheld the Tribunal's decision to fix a 5-year qualifying period for gratuity under the Payment of Gratuity Act, 1972, emphasizing that the determination of gratuity should consider the economic conditions and the specific circumstances of each case. The Court noted that while some precedents suggested a 10-year period, the Tribunal's approach was justified given the current economic climate and the need for flexibility in awarding gratuity. The Court affirmed the Tribunal's discretion in considering both basic wages and dearness allowance for calculating gratuity amounts.