The Labour, Skill Development & Employment Department, Gujarat on February 9, 2022 has issued Notification regarding clarification with respect to Provision of section 8 of the Payment of Gratuity Act, 1972 on 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 following has been stated namely: -
• "That amount" means the amount of gratuity which is payable under the Act by the employer to the person entitled thereto but has not been paid by the employer within the prescribed time limit. And, the Controlling Authority is required to issue a certificate only with regard to the unpaid amount by the employer to the concerned person.
• 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 such rate as the Government of India may specify, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto.
[Notification No. CMO/102021/303909/M-3]
