Determination of gratuity:
A person
who is eligible for payment of gratuity under Payment of Gratuity 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.
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.
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.]
(4) (a)
If there is any dispute to the amount of gratuity payable to an employee under
'Payment of Gratuity Act' or as to the admissibility of any claim of, or
in relation to, an employee for payment of gratuity, or as to the person
entitled to receive the gratuity, the employer shall deposit with the
controlling authority such amount as he admits to be payable by him as
gratuity.
3[(b)
Where there is a dispute with regard to any matter or matters specified in
clause (a), the employer or employee or any other person raising the dispute
may make an application to the controlling authority for deciding the dispute.]
4 [(C)
The controlling authority shall, after due inquiry and after giving the parties
to the dispute a reasonable opportunity of being heard, determine the matter or
matters in dispute and if, as a result of such inquiry any amount is found to
be payable to the employee, the controlling authority shall direct the employer
to pay such amount or, as the case may be, such amount as reduced by the amount
already deposited by the employer.]
5 [(d)]
the controlling authorities shall pay the amount deposited, including the
excess amount, if any, deposited by the employer, to the person entitled
thereto.
5 [(e)]
as soon as may be after a deposit is made under clause (a), the controlling
authority shall pay the amount of the deposit-
(i) To the applicant where he is the employee;
Or
(ii) Where the applicant is not the employee, to the
6[nominee or, as the case may be, the guardian of such nominee or] heir of the
employee if the controlling authority is satisfied that there is no dispute as
to the right of the application to receive the amount of gratuity.
(5) For
the purpose of conducting an inquiry under sub-section (4), the controlling
authority shall have the same powers as are vested in a court, while trying a
suit, under the Code of Civil Procedure, 1908 (5 of 1908), in respect of the
following matters, namely:-
(a) Enforcing the attendance of any person or examining him on
oath;
(b) Requiring the discovery and production of documents;
(c) Receiving evidence on affidavits;
(d) Issuing commissions for the examination of witnesses.
Recovery of gratuity:
If the
amount of gratuity payable under this Act is not paid by the employer, within
the prescribed time, to the person entitled thereto, the controlling authority
shall, on an application made to it in this behalf by the aggrieved person,
issue a certificate for that amount to the Collector who shall recover the
same, together with compound interest thereon [a such rate as the Central
Government may, by notification, specify], from the date of expiry of the
prescribed time as arrears of land revenue and pay the same to the person
entitled thereto
