Gratuity

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2014 Dear sir,

one of the our employee left from our company on 01-09-2013.

Date of his joining 01-08-1998 he is eligible for gratuity. but he does't apply for that.

there is any time limit for apply gratuity.

Tnks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 October 2014 Section 7(3) casts a duty on employers to determine the amount of Gratuity and give a notice in writing to the person to whom Gratuity is payable and also to the Controlling Authority specifying the amount of Gratuity so determined. Section 7(3) provides for payment of Gratuity within 30 days from the date on which it becomes payable to the concerned person. Section 7(3A) provides for interest if Gratuity is not paid as provided in sub section 3 of Section 7.

The Hon’ble Supreme Court in the matter of State of Kerala V/s Padmanabhan Iyer, 1985 has held that delayed payment of Gratuity must be visited with the penalty of interest as the current MARKET rate till actual payment.

The provision in Section 7(1) cannot be construed as a leverage to deny Gratuity to the employee on the specious plea that the person has not applied for Gratuity as provided under Section 7(1) in Form I.