Can I Challenge My Gratuity Payment in Court? Seeking Advice on Legal Steps

Sir, I joined an Unaided Engineering College in Maharashtra on 16-6-1986 as a Lecturer. I retired as an Associate Professor in May 2021. My last salary was Rs. 116,600/- [as per the 6th pay scale]. The college had paid me a gratuity amount of Rs. 8 lakh in March 2023, which is not in line with the 6th or 7th Pay Scales [the maximum limit for the 6th pay scale being 7 lakh and for the 7th pay scale being 14 lakh, as per the Government of Maharashtra].

I want to challenge the management regarding the lower payment of gratuity. In my view, gratuity should be paid in accordance with the 7th pay scales, even though the 7th pay scales have not been implemented.

Questions Regarding Legal Action

1] Can I file a court case in this matter?
2] If yes, where could the case be filed – either in the Labour/Industrial/High court?

Please provide me with the right advice.

The District Labour Officer/Assistant Labour Commissioner is the controlling authority under the Payment of Gratuity Act. If your institution operates solely within a state (without branches in other states), you can approach the state labour department to find the appropriate authority. You can file the complaint using the attached format.

As per the Payment of Gratuity Act (PGA) 1972, gratuity must be calculated based on the wages last drawn by the employee, which should reflect the actual salary. Since the salary as per the 7th Pay Commission has not been paid, the entitlement to gratuity is not applicable.

Yes, being an unaided college, the provisions of the Payment of Gratuity Act apply, not the norms notified by the UGC.