K’taka HC says employees’ gratuity should be paid within 30 days

Bengaluru: The Karnataka High Court said that the gratuity amount of the employee released immediately within 30 days after the cessation of a person’s employment.

“It is not necessary that employers wait till an employee files an application for release of gratuity amount. It should be done immediately within 30 days after the cessation of a person’s employment,” the Karnataka High Court has ruled.

Referring to Section 7(2) of The Payment of Gratuity Act, 1972, the court noted that an employer is under obligation to settle the gratuity dues within 30 days of the end of service, whether or not an employee files an application.

Justice Nagaprasanna also noted that interest should be paid if there be any delay in the payment.