Section 8
Recovery of gratuity.
The Payment of Gratuity Act, 1972
About this Act
An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto.
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 1[at 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:
2[Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate:
Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act.]
2[Provided that the controlling authority shall, before issuing a certificate under this section, give the employer a reasonable opportunity of showing cause against the issue of such certificate:
Provided further that the amount of interest payable under this section shall, in no case exceed the amount of gratuity payable under this Act.]
Notes
1. Subs. by Act 22 of 1987, s. 8, for "at the rate of nine per cent. per annum" (w.e.f. 1-10-1987).
2. The provisos inserted by s. 8, ibid. (w.e.f. 1-10-1987).
2. The provisos inserted by s. 8, ibid. (w.e.f. 1-10-1987).