Hi,
Before answering your question ,you need to be aware of the legal position as regards paymentt of gratuity which is obligatory on the part of your employer
Section 3 of the Payment of Gratuity Act, 1972 provides for a ‘Controlling Authority’.
Different areas have different controlling authorities that ensure the effective administration of this act.
The act gives the controlling authority the status of a ‘quasi-judicial’ body which implies that it is empowered to adjudicate disputes arising out of non-payment of gratuity.
Upon recipt of your complaint in specified form regarding non paymnet of gratuity by your employer , the Controlling Authority may issue a notice in Form ‘O’ to both the applicant employee and the employer. The two parties will then have to appear before the authority on a specified date, time, and place, given in the notice.
If the employer fails to present himself or an authorized person before the authority, the authority may proceed to hear the case and determine the employee’s application ex parte.
If the employee fails to appear before the authority on the specified date, then the application will be disposed of.
The authority, on hearing the case and examining the facts may pass a direction and issue a notice to the employer if it is established that employee is entitled to gratuity.
A notice is served to the employer in Form ‘R’.
Generally, an Assistant Labour Commissioner of a state is appointed as a controlling authority in a state with the hearing taking place in the office of the Labour Commissioner.
If you have been denied gratuity payment by your employer, you can file a complaint under Section 8 of the act, against the company. The controlling authority, on hearing both sides, if satisfied with the employee’s stance, can direct the employer to pay the gratuity that is due along with the interest on it.
If an employer fails to pay gratuity amount along with interest 30 days after the controlling authority has directed it to do so, the appropriate government, be it Central Government or State Government, whoever is concerned with the employing organization, will authorize the controlling authority to start prosecution against the employer, within 15 days.
Section 9 of the act provides for all penalties that can be imposed on your employer by the Controlling Authority. Your employer will be liable for imprisonment for non-payment of gratuity – up to 6 months which may be extended to 2 years if the controlling authority deems it necessary.
It is not necessary for the employer to be imprisoned for 6 months as, if the controlling authority is of the opinion that a lesser term of imprisonment would suffice, the provision of 6 months of imprisonment would not be applicable.
A penalty amounting to imprisonment of 6 months could also be imposed on your employer if he knowingly makes a false statement or representation to avoid payment of gratuity.
Before proceeding with leagl steps, you need to once aging appeal to the employer to settle your gratuity within 30 days ,pointing out the aforesaid legal consequences .
As long as your company is not declared sick unit , the employer is bound to settle your grauity within 30 days of your leaving the organisation.
P.Senthilkumar
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