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Rights and obligations of the employer
Under section 7 of the Act, whether the application has been made. Or not it lays down that as soon as gratuity becomes payable. The employer shall determine the amount of gratuity. And a notice shall be given in writing to the person whom gratuity shall be paid. Also, specifying the amount of gratuity so determined shall inform the Controlling Authority.
Also, section 7 of the act, says that the employer is responsible for arranging the amount payable as the gratuity. Within thirty days of it is payable to the person whom it shall be paid.
While, section 7 also says, if the amount of gratuity is not paid. By the employer, to the person, it shall be paid. Then, the employer is liable to pay the gratuity from the date the gratuity became payable to the date it’s being paid. With a simple rate of interest at 10% per annum.
Although, no interest is payable if the delay in the payment of the gratuity is due to the fault of the employee himself/herself. Also if the employer has permission in writing, from the controlling authority for the delay in the payment of the gratuity.
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