Page 243 - DCOM207_LABOUR_LAWS

Labour Laws

Notes Provided that no such interest shall be payable if the delay in the payment is due to the fault of the
employee and the employer has obtained permission in writing from the controlling authority
for the delayed payment on this ground.

2. Dispute as to the Amount of Gratuity or Admissibility of the Claim

If the claim for gratuity is not found admissible, the employer shall issue a notice in the prescribed
form to the applicant employee, nominee or legal heir, as the case may be, specifying reasons
why the claim for gratuity is not considered admissible. A copy of the notice shall be endorsed
to the Controlling Authority.
If the disputes relates as to the amount of gratuity payable, the employer shall deposit with the
Controlling Authority such amount as he admits to be payable by him. According to Section 7(4)
(e), the Controlling Authority shall pay the amount of deposit as soon as may be after a deposit
is made:
(i) to the applicant where he is the employee; or
(ii) where the applicant is not the employee, to the nominee or heir of the employee if the
Controlling Authority is satisfied that there is no dispute as to the right of the applicant to
receive the amount of gratuity.

Self Assessment

State whether the following statements are true or false:
7. Section 7(3A) lays down that as soon as gratuity becomes payable the employer shall,
whether the application has been made or not, determine the amount of gratuity and give
notice in writing to the person to whom the gratuity is payable and also to the Controlling
Authority, specifying the amount of gratuity so determined.
8. If the amount of gratuity payable under sub-section (3) is not paid by the employer within
the period specified in sub-section (3), the employer shall pay, from the date on which the
gratuity becomes payable to the date on which it is paid, simple interest at the rate of 12 per
cent per annum.
9. A copy of the notice shall be endorsed to the Controlling Authority.

14.4 Benefit of this Act

Following are the benefits of this Act:
1. The quantum of gratuity is to be computed at the rate of 15 days wages (7 days wages
in case of seasonal establishments) based on rate of wages last drawn by the employee
concerned for every completed year of service or a part thereof exceeding 6 months.
2. The total amount of gratuity payable shall not exceed the prescribed limit.
3. In case where higher benefit of gratuity is available under any gratuity scheme of the Co.,
the employee will be entitled to higher benefit

Self Assessment

Fill in the blanks:
10. The quantum of gratuity is to be computed at the rate of ................. days wages.
11. The total amount of ................. payable shall not exceed the prescribed limit.
12. In case where higher benefit of gratuity is available under any gratuity scheme of the Co.,
the employee will be entitled to ................. benefit.

238 LOVELY PROFESSIONAL UNIVERSITY