Determination of Amount & Recovery of Gratuity - Payment of Gratuity Act(1972), Industrial Laws | Industrial Laws - B Com PDF Download

(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing to acton his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed,for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, determine the amount of gratuity and give notice in writing tothe person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity sodetermined.

(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to theperson to whom the gratuity is payable.

(4) If the amount of gratuity payable is not paid by the employer within the period of 30 days , the employer shall pay,from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, notexceeding the rate notified by the Central Government from time to time for repayment of long-term deposits.Howeverno such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer hasobtained permission in writing from the controlling authority for the delayed payment on this ground.

(5) If there is any dispute to the amount of gratuity payable to an employee under this Act or as to the admissibility ofany claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity,the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.

Where there is a dispute the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute. The controlling authority shall, after due inquiry and after giving theparties to the dispute a reasonable opportunity of being heard, determine the matter or matters in dispute and if, as aresult of such inquiry any amount is found to be payable to the employee, the controlling authority shall direct theemployer to pay such amount or, as the case may be, such amount as reduced by the amount already deposited bythe employer.

The controlling authority shall pay the amount deposited, including the excess amount, if any, deposited by theemployer, to the person entitled thereto.

As soon as may be after a deposit is made the controlling authority shall pay the amount of the deposit—

(i) to the applicant where he is the employee; or

(ii) where the applicant is not the employee, to the nominee or, as the case may be, the guardian of such nominee or heir of the employee if the controlling authority is satisfied that there is no dispute as to the right of theapplication to receive the amount of gratuity.

Recovery of gratuity 

If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the personentitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector who shall recover the same, together with compound interest thereon atsuch rate as the Central Government may, by notification, specify, from the date of expiry of the prescribed time asarrears of land revenue and pay the same to the person entitled thereto.Provided that the controlling authority shall,before issuing a certificate under this section, give the employer a reasonable opportunity of showing causeagainst the issue of such certificate.

Provided further that the amount of interest payable under this section shall, in no case exceed the amount ofgratuity payable under this Act.