Resigning Govt. Employees Forfeit Pension, SC Rules; Gratuity Still Due.
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News1816-12-2025, 14:28

Resigning Govt. Employees Forfeit Pension, SC Rules; Gratuity Still Due.

  • The Supreme Court ruled that the government can deny pension benefits to employees who voluntarily resign, considering it a "forfeiture of past service" if withdrawal is not allowed due to public interest.
  • In a case involving a former Delhi Transport Corporation employee, the court upheld the denial of pension but mandated payment of gratuity and leave encashment to the legal heirs.
  • The ruling clarifies that while pension may be denied upon resignation, employees or their families are still eligible for gratuity and leave encashment.
  • This judgment emphasizes the critical difference between resignation and voluntary retirement for securing pension benefits.

Why It Matters: SC: Resigning gov't employees lose pension, impacting financial security.

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