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Dear Experts,

At the time of employment, the gratuity policy of the company gave more favorable gratuity. Later the employer withdrew the policy and made a gratuity payment as per the provisions of the Payment of Gratuity Act.

Can the controlling authority entertain a dispute for the demand of gratuity beyond the entitlement as per the gratuity act? or an employee can demand more favorable gratuity as a matter of right.


From India, Delhi

If the Policy is available in the certified Standing Order revising the same would require amendment of standing order. Amendment of standing order can be objected by the employees, and without the concurrence of the Union it will not become effective. Similarly, if there is any settlement as per ID Act, then also the same would be enforceable, and the Controlling Authority under the Payment of Gratuity Act will consider the same for computation of gratuity. But in the absence of any settlement or any provision in the certified standing order for better gratuity, the Controlling Authority would be constrained to pass orders as per Payment of Gratuity Act only.
From India, Kannur
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