Page 267 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes 5. 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.
6. 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, the employer has to
consider the same.

7. 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.
10.8.4 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 an 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.

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, together with compound interest, at the rate of 9% 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.
Offences and Penalties

Section 9 declares certain acts as offences and prescribes penalties for them. Whoever, for the
purpose of avoiding any payment, makes any false statement or false representation is punishable
with imprisonment up to 6 months and/or fined up to 1000.

Offence Penalty
1. Making a false statement or false Imprisonment up to 6 months of fine of
representation to avoid any payment 10,000/- or both.
under the Act
2. Contravention or non-compliance of any Imprisonment up to 1 years or fine up to
provision of the Act or the Rules 20,000/- or both (minimum imprisonment for
3 months and fine up to 10,000
3. Non-payment of any gratuity payable Imprisonment up to two years (minimum 6
under the Act months) or fine up to 20,000 (Minimum
10,000) or both
4. Failure to make payment by way of Fine up to 10,000 and 1,000 for each day
premium for compulsory insurance u/s during which the offence continues.
4A(1) or by way of contribution to an
approved gratuity fund.

Appraisal of the Act

In Gratuity Act, minimum service is 5 years experience to claim the gratuity but in some cases in
the company knows the particular employee(s) are reaching his 5 years period so we can terminate
them due to some reasons. By that they can exempt themselves from paying the gratuity.

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