Govt of Gujarat clarifies on the Payment of Gratuity Act, 1972

Govt. of Gujarat has issued a Circular clarifying a provision of the Payment of Gratuity Act, 1972. The Circular was issued on 9th February, 2023.

The Government has considered the following query:

Whether the Controlling Authority is required to issue the certificate only with regard to the unpaid amount of gratuity by the employer to the person entitled thereto or the said authority is required to issue the certificate not only with regard to the unpaid amount of gratuity but also including the amount of compound interest on such unpaid amount of gratuity.

The Gujarat government now clarifies that:

1. Controlling Authority is required to issue a certificate only with regard to the unpaid amount by the employer to the concerned person.
2. Before the Controlling Authority issues the certificate, he is required to give the employer a reasonable opportunity of showing cause against the issue of such certificate.
3. 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 the prescribed rate from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto.
4. While recovering the unpaid amount along with the compound interest thereon, the District Collector shall ensure that the amount of compound interest payable shall in no case exceed the amount of gratuity payable under the Act.