GRATUITY PAYMENT AND INTEREST ON LATE PAYMENT
CiteLegal
 
HOME RISE NEW ABOUT LOGIN
Home > Human Resource Section > Labor & Employee Relations

GRATUITY PAYMENT AND INTEREST ON LATE PAYMENT

JOSEPHPATRAO Started The Discussion:

HI ALL,

I HAVE QUERY WE DELAYED ONE EX EMPLOYEE GRATUITY FOR A YEARS FOR CERTAIN REASONS.

NOW WE PAID THE GRATUITY @ 3.5 LAC AS PER ACT, I AM AWARE THAT INTEREST ON DELAYED PAYMENT ALSO TO BE PAID BUT I CONFUSED WITH THE RATE %OF INTEREST AT PRESENT IS IT 8.5 % ?

KINDLY ADVISE

REGARDS
JOSEPH

rajendrasappa - Member Since: Dec 2006
The interest Rate to be applied on delayed payment of gratuity is 10%.

Employees who do not receive their gratuity within 30 days (from the date on which it becomes payable) are entitled to get the money along with simple interest from the due date to the date of actual payment, the Madras High Court Bench here has said.
Dismissing a writ petition filed by Arumuganeri Salt Workers' Cooperative Production and Sale Society in Tuticorin district, Justice K. Chandru said that the 30-day time frame would begin from the due date and not from the date of a positive order passed by the controlling authority under the Payment of Gratuity Act. The judge directed the petitioner society to pay interest at the rate of 10 per cent to one of its former employees who had resigned his job in June, 2003, without driving him further to any other forum. He held that that the appellate authority under the Act had rightly ordered payment of interest from 2003. Initially, A. Rajan, who was employed in the society on a daily-wage basis for six years, had filed an application before the controlling authority.
It was allowed with a direction to the society to pay the gratuity amount of Rs.9,692 within 30 days failing which it must be paid along with interest. Subsequently, the employee filed an appeal claiming that he was paid only the gratuity amount.
Allowing his appeal, the Appellate authority ordered to pay interest at the rate of 10 per cent from the date on which the gratuity became due till the date on which it was paid. The society had filed the present writ petition contending that it paid the amount within 30 days of the order passed by the controlling authority and hence it was not obliged to pay interest. “
Source: 17th Sep 2010 – The Hindu (The Hindu : Cities / Madurai : “Delayed payment of gratuity will carry interest” )

Regards
Rajendra Sappa

Found This Useful? +Vote Up This Page Via Google.  

Why Vote? User validation is extremely important for good content to prosper.
Disclaimer: This network and the advice provided in good faith by our members only facilitates as a direction towards the actions necessary. The advice should be validated by proper consultation with a certified professional. The network or the members providing advice cannot be held liable for any consequences, under any circumstances.




Explore Topical Knowledge Areas

Interesting Relevant Discussions


DISCUSSSION STATISTICS


2807
VIEWS

1
REPLY

PLEASE KEEP YOUR CONDUCT PROFESSIONAL AND POLITE


3M Users, 100K+ Documents & 450K+ Discussions

Share »

Community Support & Professional Insights. Login or Register.
Email/Username     Password  

About Us - Advertise - Contact Us - RSS   On Google+  
All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Privacy Policy | Disclaimer | Terms Of Service
Facebook Page | Follow Us On Twitter | Linkedin Network