Gratuity paid after one year of termination without interest

Querist : Anonymous (Querist) 07 January 2012 This query is : Resolved
Dear labour case experts,

Whether paying gratuity after one year without interest to a terminated employee ( termination is without any inquiry,misconduct and chargesheet but only on grounds of surplusage and reorganisation) is sufficient to prove in court that termination was illegal as it was against Gratuity payment Act.

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Raj Kumar Makkad (Expert) 07 January 2012
You have two options viz. either to accept termination and then demand for the interest on delayed payment of gratuity or to oppose your illegal termination then to discard your gratuity.

Now it is your sweet desire to opt iether of two.

Shyam Ji Srivastava (Expert) 08 January 2012
For Interest you can also approach Distt. Consumer Forum.

Shailesh Kumar Shah (Expert) 08 January 2012
I humbly disagree with views of Mr.Shyam ji.
Employee is not fall in the definition of 'consumer' under the Consumer Protection Act.

Act as advised by Mr.Makkad.

Isaac Gabriel (Expert) 08 January 2012
You can file a case with the Assistant commissioner of Labour for the payment of interest for the belated payment of gratuity by the employer.

Querist : Anonymous (Querist) 08 January 2012
Dear Mr. Makkad,

My question mainly is to prove that whether termination is illegal because management on one hand in writing has said that termination was not due to misconduct and on the other hand they withheld the full and final amount and gratuity for one year whereas in Gratuity act it is clearly written that for terminated employee onus is on employer who must arrange to pay his gratuity even if the employee did not claim it on form I or thru any simple application.

Raj Kumar Makkad (Expert) 08 January 2012
The termination is not attached with the delayed payment of gratuity. Termination is based upon some other grounds so if you challenge the termination, you should not accept the gratuity and should return it and should come openly in favour of service.

prabhakar singh (Expert) 08 January 2012
agree with Mr.Makkad.

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