Arun was working in a factory from 1st October 2020. He met with an accident while working in the factory on 30th June 2023 which resulted into his permanent disablement. His services were terminated by the owner of the

According to Section 4(1) of the Payment of Gratuity Act, 1972, gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years: on his superannuation, or on his retirement or resignation, or on his death or disablement due to accident or disease. The completion of continuous service of five years is not necessary where the termination of the employment of any employee is due to death or disablement. Further, the period of continuous service is to be reckoned from the date of employment and not from the date of commencement of this Act. For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement. Mere absence from duty without leave cannot be said to result in breach of continuity of service for the purpose of this Act. [ Kothari Industrial Corporation v. Appellate Authority, 1998 ] In view of the aforesaid provisions of the Act, Arun is entitled to the gratuity payment from the owner of the factory, and the decision of the owner in non-payment of gratuity is not correct.