Interpretation of section 14 of payment of gratuity act 1972

Dear Sir

This section over rides other law or contract or other agreements even though the terms of those laws or other contracts or agreements are inconsistent with the provisions of the PG Act. Prior to 1972 there was no law which cast a duty on the employer to pay gratuity to his workmen. In those periods, the payment of gratuity depended on the Awards of the Industrial Tribunal or Labour Court or on the agreement between the employer and his workmen.   Also, certain employers framed rules applicable to their workmen for the payment of gratuity. The rates of gratuity provided for in those Awards or agreements or regulations were varied. Each had its own rate. The conditions under which gratuity became payable were also different. The qualifying service to become entitled to gratuity was also different. In certain establishments there was no Award or agreement or regulation for the payment of gratuity and the employee had to go without gratuityThe PG Act had made it mandatory for the employer to pay gratuity if the conditions specified therein are fulfilled. The Awards,agreements and other regulations in so far as they  were inconsistent with the PG Act, that is, if they  provided for a lesser rate of gratuity or different conditions for eligibility to get gratuity and longer qualifying service than provided for under the Act. Section 14 of the PG Act saysthat  those Agreements, awards and regulations not applicable and that the PG Act alone would apply. However, if those Awards, agreements, and regulations provide for better terms for the payment of gratuity than what is provided for in the PG Act, then those Awards agreements and regulations will continue to apply. This is based on the principle that a law should not deprive a worker of a benefit he was enjoying even without the application of that law.

With regards

V.HARIKRISHNAN

Joint Commissioner of Labour (Retired)

Government of Tamilnadu

Advocate and Labour Law Consultant

Chennai

e mail tovharikrishnan@yahoo.com

agree with the view of mr."V.HARIKRISHNAN"

The said section simply provide that no rule or condition can be made applicable to the employee of an establishment, which is less favorable then the provisions of the Payment of Gratuity Act.

Yes, I also Agree

Many thanks, to learned Mr. Harikrishnan and Mr. Tripathi, for a crisp and simple interpretation.

The reply is helpful to everybody.On the contrary, the Management,  immediately after receiving the order of the controlling Authority to pay the Gratuity amount with interest @10% ,chose to arrive a settlement under section 18(1) of the Industrial disputes Act  with the employee to  receive the award amount alone foregoing the interest portion. eventhough the Gratuity Act has section 14 is an overrriding effect .under .Will it amount to subverting the provision of the Gratuity Act .In appeal, the Management put forth defence that he was not coerced to sign the same.Also advanced the agrument that the employee voluntarioly offered to forgo the interest. But the real fact was the Management took advantage of the difficult situation meted out ,and if the Management went on appeal, it will take years to get the award amount .Is there any possibility to get the interest amount..