Gratuity Delayed Despite Labour Commissioner's Order: What Should I Do Next?

Respected All, I need your guidance on my Gratuity case. The Assistant Labour Commissioner has instructed the employer to pay the gratuity with an interest of 10% to the employee (myself). However, even after three months, I am still waiting. I seek your advice on further action. I am living in Chandigarh.

Respected all, I need your guidance on my gratuity case. The Assistant Labour Commissioner has instructed the employer to pay the gratuity with an interest of 10% to the employee (myself). However, even after three months, I am still waiting. I need your guidance for further action. I am living in Chandigarh.

Hi, You can appeal before the same Assistant Commissioner of Labour and represent that the order of the ACL is honored by the Employer.

You can approach the controlling authority, i.e., the Assistant Labour Commissioner, who passed the order again and ask him to take further action. He will either write to the employer or initiate revenue recovery action.

Meanwhile, please check whether the employer has gone for any appeal against the order.

Namaskar Everyone, Thanks for the valuable suggestion. I will meet the concerned authority and update you on this thread soon.

Dear and respected all, Namaskar,

In continuation of my previous query "Gratuity amount paid even after an order issued," yesterday, I visited the office of the Assistant Labor Commissioner (ALC), Central. The following suggestions were received:

1) Submit Form T (under the Gratuity Act).

2) You will receive a notice for appearance if there is any appeal against the order issued.

Please guide for the right steps accordingly.

Hi, You are on the right track. Form T Application for Gratuity Recovery Form T is an application for the recovery of gratuity. When an employer fails to pay the gratuity due under the Act in accordance with the notice by the controlling authority, the concerned employee, their nominee, or legal heir, as applicable, may apply to the controlling authority in duplicate in the given format for recovery.

Respected All,

Namaskar, Still, no action has been taken by the concerned office of the Asst. Labor Commissioner (ALC), Central. Yesterday, I called Sir (Asst. Labor Commissioner) to know the progress in my case, and he said, "We are taking the appropriate action, don't worry."

i) I just want to know if there is any time limit...?

ii) Where to approach if there is no action...?

Hi, The employer has the right to appeal before the Appellate Authority against the order of ACL, and the timeframe for that is 60 days, I think. Have you checked whether the employer has gone for an appeal? But in your case, it looks like even after the lapse of 3 months of the ACL order, gratuity has not been paid.

You can approach the ACL office again and inform them about the non-compliance. Please check with the ACL office for any specific forms required, or a normal letter will be sufficient. Subsequently, ACL (Controlling Authority) will issue the necessary order for the recovery of the amount of gratuity with interest from the employer. I think the recovery process will be through the District Collector.

In most cases, ACL will hold this process based on the employer's request to provide some breathing time for the employer to make the payment. However, once the order is passed, the employer has no other option but to pay, although they might delay the process using influences.

Respected Sir, @Lakshmi Narayan

In reply to your query: "Please check with the ACL office for any specific forms for that or a normal letter will be sufficient. Subsequently, ACL (Controlling Authority) will issue the necessary order for the recovery of the amount of Gratuity with interest from the Employer. I think the recovery process will be through District Collector."

The ACL asked me to submit a covering letter stating that the gratuity was still not paid even after the order was issued on ----/---/--, along with an order copy and Form T. Yes, the recovery process will be through the DC office in UT. However, all documents were submitted 2 months back.

"Have you checked whether the Employer had gone for Appeal?" No notice has been received to date.

Hi, Understood. As you submitted all documents with the ACL office, you need to follow up with them only. It has already been indicated that the employer might take some time with the ACL office. So, be in constant touch with the ACL office. Hopefully, you will receive the amount from the employer.

Respected All,

Namaskar, In light of our discussions, I wish to inform you that the ACL issued a show-cause notice to the employer. I want to know what options are still available to the employer to delay or deny the gratuity?

Steps to Take if Gratuity is Not Paid

1. Send a reminder to your employer. In your reminder, state that the Assistant Labour Commissioner has instructed them to pay you your gratuity with interest and that you are still waiting for payment. You should also set a deadline for payment and state that you will take further action if you do not receive payment by that date.

2. File a complaint with the Assistant Labour Commissioner. If you do not receive payment by the deadline you set, you can file a complaint with the Assistant Labour Commissioner. The Assistant Labour Commissioner will investigate your complaint and may order your employer to pay you your gratuity with interest.

3. File a lawsuit against your employer. If the Assistant Labour Commissioner does not order your employer to pay you your gratuity, you can file a lawsuit against your employer. You will need to hire an attorney to represent you in court.

Lawyers in Chandigarh for Gratuity Cases

Here are some lawyers in Chandigarh who can help you with your gratuity case:

- Sunil Kumar Sahore Advocate
- Adv. Mukul Goyal
- Naresh Mehta & Associates
- JusIP (Advocates & consultant)
- AK Gupta & Associates

I hope this helps!

@Creativebit, As the employer has been issued a show-cause notice by the Assistant Commissioner of Labour, your case is on the right track. Follow up with the Labour Department to determine whether the employer has submitted their explanation for the delay in compliance and to ascertain if the ACL has issued any further directives to the employer company.

Recovery of Unpaid Gratuity

Where the gratuity remains unpaid, as per the Payment of Gratuity Act 1972, on the application of the claimant, the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) can issue a certificate for that amount to the Collector. The Collector shall recover the same, together with compound interest from the date of expiry of the prescribed time, as arrears of land revenue and pay it to the person entitled thereto (Section 8 of the Act).

Steps Before Revenue Recovery

The issuance of a notice to the employer is the first step before issuing a certificate to the Collector to commence the revenue recovery proceedings. Please check whether the employer is still operational or undergoing proceedings under the Board for Industrial and Financial Reconstruction (BIFR) or facing liquidation. Try to gather information on the assets (both movable and immovable) of the employer so that when it goes to the Collector, you can readily provide the list of items to be attached.

Respected all,

Namaskar, this query is in reference to my previous posts. Still, no progress is seen in my case. Whenever I called the commissioner, sir, he simply replied, "We are working on your case."

A show cause notice was issued to the employer with a time period of 7 days to reply, which has now crossed 45 days. I just want to know what other options are left for me to appeal. A total of two years have been completed as of today.

Please complete an application addressed to your former employer. Attach a copy of the order issued by the Labor Commissioner (which can be sent to them via RPAD post). Also, send a copy to the Labor Commissioner and personally deliver another copy to the Labor Commissioner's Office. If possible, attempt to meet with the Labor Commissioner in person and explain the situation. Please refrain from contacting the commissioner by phone.

Respected All, Good Morning, In addition to my previous post regarding the gratuity case, the Labour Commissioner's office has issued a letter to DC/DM for the recovery of the said amount from the employer on August 10, 2023. However, to date, no further information has been received from the DM/DC office. When I visited the office, it was said that the notice of appearance had been issued to the employer.

Proceeding Time for Gratuity Recovery

I just want to know the actual proceeding time for this recovery, as the respected DM office has not confirmed any deadline for this.

As the Labour Commissioner's office has issued instructions to the DC/DM's office for the recovery of your gratuity amount from your employer, you do not have to follow up further with the DC office or LC office. It will take its course of time for recovery. Now, it is your employer's call.

Please communicate with the ALC/DLC Officer regarding the same and ask again for the real-time status. Please note that they have already issued a notice to the employer. ALC/DLC will take further action against the employer as per the law. In your case, there is nothing to worry about; the employer has to pay the total amount with interest. Therefore, please keep in touch with the ALC/DLC officer.

Respected All,

Namaskar, I need to write a request letter to the DC/DM for the execution of the order for the payment of gratuity. Please help me by sharing the same.