Gratuity interest

Dear Client,
Under Rule 7(1) of the Payment of Gratuity Rules, 1972, an employee who is eligible for payment of gratuity under the Act, or any person authorized, in writing, to act on his behalf, shall apply, within thirty days from the date the gratuity became payable, in Form 'I' to the employer who is duty bound to disburse the gratuity within 30 days of cessation of employment of employee or claim made by an employee. After 30 days, the employer has to pay you not only the gratuity amount but also the simple interest at the prevailing rate of interest accrued for the delay in payment of the gratuity till the date of deposit of gratuity amount with the Controlling Authority. As per Sub-Section 4(a) of Section 7 of the Payment of Gratuity Act. if there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity. Section 8 of the Payment of Gratuity Act, 1972, deals with the recovery of unpaid gratuity and states that if the amount of gratuity payable under this Act is not paid by the employer, within the prescribe time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at such rate as the Central Government may, by notification, specify, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto. Given the proposition of relevant law, while the employer is liable to pay interest on the unpaid gratuity till the date of deposit of the gratuity amount with the Controlling Authority, they are liable to pay further interest based on the final order passed by the Appellate Authority, the Controlling Authority issue direction for execution of the said order to the Collector following the provision of Section 8 of the Act as stated above. Hope the matter stands clarified.