Denied to Pay Gratuity
Querist :
Anonymous
(Querist) 23 February 2011
This query is : Resolved
Hi,
I was worked with an private limited company more than 7 years. I already applied the for Gratuity to my company. Now, they are denied to pay the Gratuity than please let me know what procedure and legal action I can do for that. What time it will take to clear the things ?
Thanks
Parveen Kr. Aggarwal
(Expert) 23 February 2011
Sections 8 and 9 of the Payment of Gratuity Act, 1972:
"8. RECOVERY OF GRATUITY. - If the amount of gratuity payable under this Act is not paid by the employer, within the prescribed time, to the person entitled 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 at such rate as the Central Government may, by notification, specify, from the date of expiry of the prescribed time, as arrears 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 cause against the issue of such certificate :
Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act."
"9. PENALTIES. - (1) Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both.
(2) An employer who contravenes, or makes default in complying with, any of the provisions of this Act or any rule or order made thereunder shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both :
Provided that where the offence relates to non-payment of any gratuity payable under this Act, the employer shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years unless the court trying the offence, for reasons to be recorded by it in writing, is of opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice."
H. S. Thukral
(Expert) 01 March 2011
Make an application to the controlling authority under the Act ( usually it is labour officer or asstt. labour commssionerof the area) after hearing the parties he shall make an order for payment which can be recovered as arrears of land revenue. you shall also be eligible for interest on amount from the date of your demand on the employer.
