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Labour Laws Gujarat Ministry of Labour and Employment Payment of Gratuity Act, 1972

Clarification on the Recovery of gratuity under section 8 of Payment of Gratuity Act, 1972

09-Feb-2022 | CMO/102021/303909/M-3

The Labour, Skill Development & Employment Department has issued clarification regarding Section 8 of Payment of Gratuity Act, 1972. Section 8 pertains to recovery of amount of gratuity not paid by the employer, wherein the aggrieved person can make an application to the Controlling Authority who shall issue a certificate to Collector to recover the unpaid amount.
A clarification was sought if the certificate is issued only for the unpaid amount or does it include the compound interest on that amount as well. In this regard, it has been clarified:
i) The Controlling Authority is required to issue a certificate only with regard to the unpaid amount by the employer to the concerned person.
ii) After the Controlling Authority issues the certificate of the unpaid amount, the duty is cast upon the District Collector to recover the said unpaid amount along with the compound interest at such rate as the Government of India may specify, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled.

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