Payment of gratuity

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This query is : Resolved

sucharitha (Querist)

16 October 2014 with in how many days an appeal against controlling authority order generally made in payment of gratuity act

@VaibhavJ

@VaibhavJ (Expert)

16 October 2014 HI

Section 7 of the payment of grauity Act 1972 will answer your query:

section 7.

(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in
writing, to act on his behalf shall send a written application to the employer, within such time and in
such form, as may be prescribed, for payment of such gratuity–
(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in
sub-section (1) 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.
20[(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it
becomes payable to the person to whom the gratuity is payable.
(3A) 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 such rate, not exceeding the rate
notified by the Central Government from time to time for repayment of long-term deposits, as that
Government may, by notification specify:
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.]

In case notice is not sent to the employee with in 30 days or for delay if any on the part of the employer simple interst liability comes on employer.

Thanks

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