Page 135 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II

Notes

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.
7.5.4 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.

7.5.5 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 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 ten thousand rupees but which may extend to twenty thousand rupees, or
with both:
Provided that where the offence relates to non-payment of any gratuity payable under this 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 reasons to be
recorded by it in writing, is of opinion that a lesser term of imprisonment or the imposition of
a fine would meet the ends of justice.

Self Assessment

Fill in the blanks:

12. In case where higher benefit of gratuity is available under any gratuity scheme of the Co.,
the employee will be entitled to ........................... benefit.

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