SAINT XAVIERS HIGH SCHOOL Vs. SHAILAJA VISHNU DESHPANDE

JUDGEMENT

(1.) By an order of this Court dated 17.1.2018, the petitioner / management was directed to deposit the Gratuity amount of Rs. 575352/as in Jan. 2018, as was granted by the Labour Court. The said amount has been deposited in this Court on 25.1.2018.

(2.) The petitioner / management admits that the respondent is entitled for Gratuity strictly as per the definition of Gratuity and the manner and calculations prescribed under the Payment of Gratuity Act, 1972. This Court has also settled the law on Gratuity that once the employer is liable to pay the Gratuity within one month of the severing of employer-employee relationship, the interest on the amount will have to be granted if the employer fails to pay the gratuity amount. An employee is not expected to approach the employer begging for gratuity.

(3.) The Labour Court has calculated the gratuity on the gross monthly wages last drawn by the respondent and has granted interest at the rate of 10% p.a. since the employee retired on 30.6.2012 and the gratuity became payable from 30.7.2012. On this count, despite the strenuous submissions of the learned Advocate for the petitioner, I do not find any error committed by the Labour Court in granting interest. His contention that gratuity cannot be calculated on gross salary, is correct and sustainable.