Payment of Gratuity Act 1972

(a) Recovery of Gratuity 

(b) Penalties 

Recovery of Gratuity: Section 8 provides that if the amount of gratuity payable under this Act is not paid by the employer within the prescribed time, the claimant shall make an application to the Controlling Authority. The Controlling Authority is authorized to issue a certificate to the Collector to recover the amount. Recovery of Gratuity. Section 8 provides that if the amount of gratuity payable under this Act is not paid by the employer within the prescribed time, the claimant shall make an application to the Controlling Authority. The Controlling Authority is authorized to issue a certificate to the Collector to recover the amount.

The Collector shall recover the amount together with compound interest thereon at such as the Central Government may specify, from the date of expiry of the prescribed time.The amount of interest payable under :this section shall not exceed the amount of gratuity payable under this Act., The amount of gratuity under this section shall be recovered as arrears of land revenue and paid to. the person entitled thereto.The Controlling Authority, before issuing a certificate to the Collector, shall give the employer a reasonable opportunity of showing cause against the issue of such certificate.

Penalties : The Payment of Gratuity Act, 1972 imposes penalties on employers for various offences. These are stated below.

Making a false statement or false representation to avoid any payment under the Act. Imprisonment for a term which up-to 6 months or fine up-to Rs. 10,000 or both. [Sec. 9(1)]

Contravention or non-compliance of any provisions of the Act or Rules or Order made the render. Imprisonment up-to one year (minimum 3 months) or fine upto Rs. 20,000 (minimum Rs. 10,000) or both. [Sec. 9(2)]

Non-payment of gratuity under the Act. Imprisonment upto two years (minimum 6 months) or fine upto Rs. 20,000 (minimum Rs. 10,000) or both.

Failure to make payment by way of premium for compulsory insurance under Section 4A (1) or by way of contribution to an approved Gratuity Fund. Fine upto Rs. 10,000 and Rs.1,000 for each day during which the offence continues.