Page 245 - DCOM207_LABOUR_LAWS

Labour Laws

Notes 14.5.3 Nomination

An employee who has completed one year of service has to name his/her nominee in the
prescribed form. An employee in his nomination can distribute the amount of gratuity amongst
more than one nominee. If an employee has a family at the time of making the nomination, it has
to be made in favour of one or more members of the family. If nomination is made in favour of
a person who is not a member of his family, the same is void. However, if the employee has no
family at the time of making a nomination, he can make the nomination in favour of any person.
But is such employee acquires a family subsequently, then such nomination becomes invalid
forthwith, and thereafter the employee has to make a fresh nomination in favour of one or more
members of his family: Nomination once made can be modified after giving due notice to the
employer, If a nominee predeceases the employee, a fresh nomination is required to be made:

Notes A person who is entitled to gratuity has to apply himself/herself or, through
an authorised person to the employer for gratuity within the prescribed time. Even if the
application is made after the prescribed time, the employer has to consider the same.
Similarly, the employer has to give notice to the person entitled to gratuity and to the
controlling authority immediately after it became payable, specifying the amount of
gratuity, and thereafter make arrangements for its payment.

14.5.4 Settlement of Claims

The employee and’ the employer or any other person raising the dispute regarding the amount
of gratuity may make an application to the controlling authority to decide the dispute. No appeal
by and employer shall be admitted unless the employer produces a certificate of the controlling
authority-to the effect that he has deposited with the controlling authority an amount equal to
the amount of gratuity required to be deposited or deposits with the appellate authority such
amount.

Did u know? Section 8 stipulates that an aggrieved employee can file an application to the
controlling authority for recovery of the amount of gratuity.
The controlling, authority will issue a certificate to the collector for recovery of that amount. The
collector shall recover the amount, together with compound interest, at the rate of nine per cent
per annum from the date of expiry of the prescribed time as arrears of land revenue, and pay the
same to the person entitled to it.

14.5.5 Penalties

Whoever, for the purpose of avoiding any payment to be made by himself under this Act 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 imprisonment for a term which
may extend to six months, or with fine which may extend to ten thousand rupees or with both.
An employer who contravenes, or makes default in complying with, any of the provisions of
this Act or any rule or order made thereunder 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 ten thousand rupees but which may extend to twenty thousand rupees, or
with both:

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