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Kishore Kumar Sethi (Self-Employed)     04 August 2009

Gratuity and Bonus

The employee has filed case in the civil court for recovery of gratuity and bonus.  The employer says that the civil court has no jurisdiction and it is to be settled seperately by the Gratuity Board and Bonus Settlement Commissioner. Is it that the civil court can not hear this case or it can be heard by the court.  Please advise.



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 7 Replies

Arul Kumar (Legal Consultant & Professor at Law)     04 August 2009

The Employee's Provident Fund Act 1952 provides that the Central Provident Fund Commissioner or any other officer (to whom the povers of determination have been delegated) may decide the dispute and determine the amount due from an employer. If the Party is aggrieved by the order of the Commissioner, he can prefer an appeal before the PF Appellate Tribunal. But this not the end of justice, the person can approach the higher court of competent jurisdiction.

 

 

Kishore Kumar Sethi (Self-Employed)     05 August 2009

Since the employee has other case related to non-payment of wages/salary etc. can he file the case for gratuity and bonus with that case straight in the civil court without going to Provident Fund Commissioner etc.

jagadish paranjape (Advocate)     06 August 2009

When right arises under special Act and the said Act provides remedy for

redressal,the remedy of civil court is barred by implication.In case of gratuity

an application can be made to controlling Authoroty under that Act and for bonus,the claim can be made u/s33(c)(2) of the I.D.Act1947.

mahesh pandey (Vice President)     07 August 2009

Dear Friend,

Mr. paranjape is absolutely right, there is no remedy before any pf commissinor or civil court. Gratuity application 2 be filed before the controlling authority under the payment of gratity Act,1972 &  in case of bonus the claim sud be filed before any labour court u/s 33 C (2)  of the I.D.Act,1947,

 

Kishore Kumar Sethi (Self-Employed)     10 August 2009

Fine but the problem is Company says now that your salary is exceeding the limits of bonus it can not be given.  Whereas in the previous years they were making bonus payments.  Is it a law that if the bonus has been given in previous years it has to be continued.  In the previous years also the salary was above the limit.  Then how can a company terminate payment of bonus which was being given in the previous years for above the bonus limits.

mahesh pandey (Vice President)     10 August 2009

Friend,

It's not in law that what u have been paid as Bonus in the previous year will continue unless it is agreed through any MOU/ Aggrement.

jagadish paranjape (Advocate)     11 August 2009

Since your salary is above the limits prescribed under the payment of bonus Act,what you

received last year was an ex-gratia amount,which is not governed by law.However if other employees not covered under bonus Act,are paid ex gratia amount this year,then it would be a

case of unjustified discrimination and for that legal remedy may be available.


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