'Gratuity is a reward to employee, can't deny it': Labour court

The labour court in the city stating recently that the gratuity amount is as good as a reward to an employee for his successful completion of service, therefore, it cannot be denied, ordered that the Brihanmumbai Electric Supply and Transport (BEST) pay up the gratuity with interest to a former employee.

The application had been filed by a former BEST bus inspector before the Controlling Authority under the Payment of Gratuity Act. The applicant had joined the undertaking in 1990 and retired in August last year but was yet to be paid his gratuity of over Rs 9 lakh.

As per his complaint, the BEST was avoiding the payment even after he had sent them a notice.

In their response before the authority, the BEST stated that they did not have the jurisdiction to decide the matter as the undertaking has a private scheme for gratuity for its employees. It also stated that it is functioning under financial losses and has obtained loans for its daily functioning. While not refusing to pay up, it stated that it could make part-payment immediately and pay the rest of the amount when funds are available.

Judge Vyas stated in his order, "In present case applicant has been retired in August 2018 but till date has not received the gratuity. The Act has prescribed interest at the rate of 10% per annum if the gratuity has not paid [sic] within a specific period. Therefore entitlement of applicant for the said rate of interest cannot be denied."

Vyas added, "The opponent is directed to pay the applicant an amount of Rs 9,83,858 towards gratuity along with interest at the rate of 10 % per annum from 02/08/2018 (date of retirement) till its realisation."

Speaking in favor of the order, Vidyadhar Date, Convenor of Aamchi Mumbai, Aamchi BEST initiative said, "Workers should always be given top priority and their interest needs to be protected. That is the reason we fight for payment of dues and better wages under the initiative."

Date further said that the court could not decide on the matter since it has a private scheme for gratuity for its employees,

"That is the reason we oppose privatization. The undertaking of having a private scheme is no defence. These are legal obligations," he said.