Gratuity payment

Isaac Gabriel (Querist) 26 August 2023 This query is : Resolved
The controlling Authority passed orders for the payment of gratuity.The Management filed an appeal duly remitting the award amount to the Controlling Authority.The appeal fails and the Management filed appeal in High Court. But no stay was ordered. The case is pending for the last five years in High court.But the controlling authority refuses to disburse the amount pointing the High Court case. Whether action of the controlling Authority to refuse payment is as per law. What is the remedy.

Follow Query

Report Abuse

Quick Summary

An employee's gratuity payment was ordered by the Controlling Authority, but the management appealed to the High Court and deposited the award amount. Despite no stay being granted, the Controlling Authority refused to disburse the funds, citing the pending High Court case. While employers can forfeit gratuity for grave misconduct or damage, merely filing an appeal without a stay doesn't permit withholding payment. The employee's remedy is to pursue an execution petition to enforce the original order.

Sudhir Kumar, Advocate (Expert) 27 August 2023
seek execution.

kavksatyanarayana (Expert) 27 August 2023
Why did the management stop the gratuity and appeal, for which reasons? As per The Gratuity Act, of 1972, the employer exercises control over the partial or whole gratuity amount to be paid, in the event of grave misconduct or damage caused by the employee to the belongings of the employer and others. The gratuity of an employee whose services are being considered to be terminated on the accountability of an act of wilful omission/negligence causing any damage or loss to, or destruction of, property belonging to the employer shall be forfeited to the extent of the damage or loss/vandalisation so caused.

T. Kalaiselvan, Advocate (Expert) 28 August 2023
The controlling authority cannot take decision to disburse the amount held in its deposit in the absence of the disposal orders of the high court over the appeal case pending before it.
There is no legal infirmity in holding the disbursement by the authorities concerned.

P. Venu (Expert) 29 August 2023
Mere filing of an appeal, in the absence of any stay being sought and granted, does not entitle the employer to avoid compliance in disbursing the gratuity amount. Employee may take steps in getting the orders executed.

Isaac Gabriel (Querist) 03 September 2023
Thanks to Experts Sudhir kumar and P.Velu for immediate reply. I am pusuing action to file the execution petition.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries