Power of controlling Authority to entertain the gratuity payment demand beyond the entitlement under the gratuity act.

Dear Experts,

At the time of employment, the gratuity policy of the company provided for a more favorable gratuity. Later, the employer withdrew the policy and made a gratuity payment in accordance with the provisions of the Payment of Gratuity Act.

Can the relevant authority entertain a dispute regarding the demand for gratuity beyond the entitlement specified in the gratuity act? Can an employee demand a more favorable gratuity as a matter of right?

Regards,

If the policy is available in the certified Standing Order, revising the same would require an amendment of the standing order. The amendment of the standing order can be objected to by the employees, and without the concurrence of the union, it will not become effective.

Similarly, if there is any settlement as per the ID Act, then the same would be enforceable, and the Controlling Authority under the Payment of Gratuity Act will consider the same for the computation of gratuity. However, in the absence of any settlement or any provision in the certified standing order for better gratuity, the Controlling Authority would be constrained to pass orders as per the Payment of Gratuity Act only.