Gujarat: 8 establishments booked for non-payment of gratuity to their employees

New Delhi: The Labour & Employment department (LED) of Gujarat Government has initiated legal proceedings against 8 establishments in Ahmedabad, Surat Vadodara & Valsad for non-payment of gratuity dues to their employees.

The order was signed by Additional Chief Secretary Vipul Mittra IAS.

Complaints received to Labour department from employees and unions about firms to clearing dues like gratuity under the Payment of Gratuity Act, 1972. Show-cause notices were issued to eight establishments after checks conducted by the officers of labour department, confirmed that they had delayed the payment of gratuity or were not paying gratuity at all.

Criminal case will be filed under section 9 read with section 11 of the Payment of Gratuity Act, 1972 with penalty provision, an employer who contravenes, or makes default in complying with, any of the provisions of this Act or any rule or order made there under shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both.

Among the eight establishments four are from Ahmedabad include Pace Centers Business Solution Pvt Ltd, Nimbs Foods Industries Pvt Ltd, Rozbel Bioscience ltd, Perfect Boring Pvt Ltd.

Show-cause notice also issued to firms of various districts- Teamlease- L&T, Rajkot; D.G. Nakrani GMERS hospital, Vadodara; Ekta prints Pvt Ltd., Surat and Creative Tex Mills Pvt Ltd, Valsad. In October, Labour dept. already take further legal actions to another nine firms were found non-payment of gratuity dues in Ahmedabad, Gandhinagar & Surat like Kataria Automobiles etc.

“During checks these establishments were found to be non-compliant with gratuity laws. We have initiated legal action under the payment of gratuity Act, 1972 against erring firms.” ACS Vipul Mittra said.