Recovery :
If the amount of gratuity payable under the Act is not paid by the employer within the prescribed time, to the person entitled thereto, the controlling authority shall issue a certificate for that amount to the Collector to recover the same alongwith the compound interest at such rate as prescribed by the Central Government from the date of expiry of the prescribed time as land revenue arrears to enable the person entitled to get the amount after receiving the application from the aggrieved person [Section 8]
Before issuing the certificate for such recovery the Controlling Authority shall give the employer a reasonable opportunity of showing cause against the issue of such certificate.
The amount of interest payable under this Section shall not exceed the amount of gratuity payable under this Act in no case. [Section 8]
Application for recovery of gratuity: Where an employer fails to pay the gratuity due under the Act in accordance with the notice by the Controlling Authority, the employee concerned, his nominee or his legal heir, as the case may be to whom the gratuity is payable may apply to the Controlling Authority in duplicate in Form ‘T’ for the recovery of gratuity. [Rule 19]
Penalties:
(1) Penalty for avoiding of any payment to be made: Any person who is responsible for the purpose of avoiding any payment to be made by himself or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with the imprisonment for the term which may extend to six months, or with fine which may extend to ten thousand rupees, or with both.
(2) Penalty for contravention and default in compliance of any provision: An employer, who contravenes or makes default in complying with, any of the provisions of this Act or any rule or order made there under shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year or with fine which shall not be less than Rs.10000/- but which may be extended to twenty thousand rupees or with both.
(3) Penalty for non-payment of gratuity payable under the Act- If the offence relates to non-payment of any gratuity payable under the Act, the employer shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to two years unless the court trying the offence, for the reasons to be recorded by it in writing, is of the opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice. [Section 9]
| Key Points:
♦ Where an employer makes a default /avoids the payment of gratuity- imprisonment for a term extending 6 months, or with fine extending to ` 10,000 or with both. ♦ Where an employer contravenes in complying with any of the provisions of this Act or any rule or order made under this Act- imprisonment not less than 3 months extending to one year, or with fine which shall not be less than ` 10,000/- but may be extending to ` 20,000/- or with both. ♦ In case of non- payment of gratuity – imprisonment for a term not less than six months but which may be extended to two years. |