Subverting the order of gratuity order.

Isaac Gabriel (Querist) 01 March 2024 This query is : Resolved
The controlling authority passed an aaward for payment of gratuity with interest. The Management made a settlement with the employee to get the award amount alone under section 18(1) of the Industrial disputes Act.The payment of gratuity Act overriding act under section 14.The controlling authority did not accept the settlement as it subvert the process of Gratuity act stating that it amounts to unfair labour practice.what is the way out to get the interest deprived from the employer ?

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An employer settled a gratuity award with an employee for the principal amount, bypassing the interest ordered by the controlling authority. The authority rejected this settlement, deeming it an unfair labour practice as the Payment of Gratuity Act is an overriding statute. The employee may need to file a civil suit to recover the interest, or the employer could appeal the interest portion of the award separately.

T. Kalaiselvan, Advocate (Expert) 01 March 2024
A civil suit for recovery of the interest portion may be filed by interpreting the law involved in this in the manner you understood and convince court to take the case on its files.
Let them come out with their defence, you can challenge them on the basis of legal facts and fight for the relief sought.

T. Kalaiselvan, Advocate (Expert) 05 March 2024
The controlling authority has to close and dispose the case before it, if this irregularity has been noted then the authorities may not be able to dispose the case.
Therefore the compromise between the management and the employee is regardless if it is not in accordance with the law of the land.
Now the management has to either settle the matter as per the original orders or the management can refer an appeal agaisnt the interest portion alone because the award amount has since been settled.

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