Payment of grtatuity

This query is : Resolved 

09 July 2019

In Tamilnadu, the central Cooperative Banks under the Administrative Control of the Regisgtrar of Cooperative Societies have been paying gratuity to its employees in accordance with the Group Gratuity Cash accumulation scheme of the LIC of India.This is covered under section 4(5) of the payment of Gratuity Act 1972 and there is no ceiling in the maximum amount.What is received by the Bank as Gratuity has to be disbursed to the employees without any deduction.The Registrar of Cooperative Socities, Chennai has also issued instructions to this effect.A bunch of Applications filed with the controlling Authority was rightly disposed in accordance with this provision. But the Appellate Authority did not pass the amount in excess of 3.5 lakhs and disallow the excess above 3.5 lakhs, eventhough no such claim was made from the Management pointing out section 4(3)., In fact section 4( 1) is yet to be notified in Tamilnadu ? The appeal filed with the High Court has been dismissed with direction to seek remedy in proper Court/Forum/ Authority.

P. Venu (Expert)
09 July 2019

Who is the Appellate Authority? Who went in appeal? It appears that some facts are missjing.

Isaac Gabriel (Querist)
09 July 2019

The Joint Commissioner of Labour is the Appellate Authority. The management went on appeal questioning the order . the the Controlling Authority's order with instruction to limit the amount of Gratuity to 3.5 lakhs in accordance with the Payment of Gratuity Act.Therefore, the employees filed appeal in High Court and the Hogh Court has remanded the matter. Kindly advise.

venkatesh Rao (Expert)
02 November 2019

In my view, remanding means sending back the case to the court/authority which passed the impugned order. If that is so, the case must have been sent to joint commissioner who must hear and dispose afresh as directed by the High Court. Kindly post the order of High Court so that it would be better analysed.

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