A significant breakthrough has been achieved through the dedicated conciliation efforts of the Assistant Labour Commissioner (Central), Hubli, Ministry of Labour and Employment, Government of India, while resolving an industrial dispute demanding enhancement of the gratuity ceiling for the regular workers of HLL Lifecare Limited, Kanagala Factory, Belagavi.

After three rounds of intensive conciliation proceedings, a Tripartite Memorandum of Settlement under Section 53(3) read with Section 57(1) of the Industrial Relations Code, 2020 was signed on 18.06.2026 between the Management of HLL Lifecare Limited and the recognized Trade Unions. HLL Lifecare Limited, functioning under the Ministry of Health and Family Welfare, Government of India, is the only Central Public Sector Enterprise under the Ministry, along with its subsidiary companies. The settlement, therefore, assumes significance not only for the employees of the establishment but also as an important social security measure that may encourage similar initiatives in other Central Public Sector Enterprises.

As per the settlement, the gratuity ceiling applicable to the regular workers of Kanagala Factory has been enhanced from ₹20 lakh to ₹25 lakh with effect from 01.04.2026. The revised ceiling will be applicable to all eligible workers who become entitled to gratuity on or after 01.04.2026, under the applicable statutory provisions.

The settlement is eakh per eligible employee and extends immediate financial benefits to employees who have already retired during the current year. The settlement is also expected to have a wider impact across HLL Lifecare Limited. Approximately 1,118 workers employed in the Company's manufacturing units at Thiruvananthapuram, Kochi and Goa are likely to receive similar benefits through subsequent internal orders of the Comp expected to serve as a landmark development in Central Public Sector Enterprises and may encourage similar initiatives relating to enhancement of gratuity benefits for workers in other establishments.

The successful conciliation reflects the continued commitment of the Office of the Chief Labour Commissioner (Central), Ministry of Labour and Employment, Government of India, towards effective dispute resolution, promotion of industrial peace and protection of workers' welfare.

 

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