What Happens if Gratuity Payment is Delayed Beyond 30 Days After Resignation?

What is the penalty if there is a delay in the payment of Gratuity after 30 days of Resignation?

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In most cases, the delay in payment of Gratuity after 30 days of resignation may result in penalties. It is essential for employers to comply with labor laws and ensure timely payment of gratuity to employees who are eligible to receive it. Delays could lead to legal consequences and financial penalties for the employer. It is advisable to review the specific regulations and guidelines related to gratuity payments in the relevant jurisdiction to understand the implications of delayed payments.

Dear Selvam,

Belated payment of gratuity attracts interest at 10% per annum.

Dear Srinath Sir,

Please tell me, what if a person does not apply for his gratuity for two months? Is it necessary that one should apply for his gratuity to receive it from the employer?

Payment of Gratuity Rules, 1972

As per the Payment of Gratuity Rules, 1972, an application for the payment of gratuity filed after the expiry of the periods specified in this rule shall also be entertained by the employer if the applicant adduces sufficient cause for the delay in preferring his claim. No claim for gratuity under the Act shall be invalid merely because the claimant failed to present his application within the specified period. Any dispute in this regard shall be referred to the controlling authority for a decision.

Application Process for Gratuity Payment

However, it is necessary that an employee who is eligible for payment of gratuity under the Act, or any person authorized in writing to act on his behalf, shall apply. An application under this rule shall be presented to the employer either by personal service or by registered post acknowledgment due.

Employer's Response Timeline

Within fifteen days of the receipt of an application, the employer shall issue a notice to the applicant employees, nominees, or legal heirs.

Regards,
Amit

Dear Mr. Aniket,

Employers also have the responsibility of informing eligible employees to submit their claim for gratuity. Eligible employees should submit their claim for gratuity. It is more the employer's responsibility than the employee's to process the claim and make the payment.

Dear sir,

I understand what you're saying, but I asked the employee to give the gratuity form, but until now, he hasn't. So, what should I do?

Dear Mr. Aniket,

You have not mentioned why the employee has not yet submitted his Gratuity Claim despite your reminder. Nevertheless, please prepare the employee's Gratuity Payment Cheque and inform the employee to collect it after submitting his claim by Registered Post Acknowledgement Due without any further delay. You should correspond and maintain records as the employee representative.