Topic
Employee benefits in Indian law cover statutory entitlements like gratuity, leave encashment, provident fund dues, and interest on delayed payments under acts such as the Payment of Gratuity Act and the Employees' Provident Funds Act.
Employees are entitled to 10% annual interest on delayed gratuity payments under Section 7(3) of the Payment of Gratuity Act, 1972, as per the Ministry of Labour notification. The Allahabad High Court ruled that employers must comply with this mandate, ensuring timely compensation for delayed payments.
The Allahabad High Court has ruled that public employers cannot delay payment of gratuity, leave encashment, or pending salary to retired employees due to financial constraints. The order mandates full payment within three months, with interest at bank rate if no specific provision exists, reinforcing that statutory benefits are non-negotiable rights, not discretionary payouts.
The Madhya Pradesh High Court ruled that employers must pay 4% per annum interest on delayed gratuity payments, even if the employee's qualifications are later challenged. The court held that once an employee is allowed to work until superannuation, disputes over qualifications cannot justify withholding statutory benefits, reinforcing employer liability for delayed payments under the Payment of Gratuity Act.
Madurai Bench of Madras HC rules that heirs of deceased employees are entitled to revised pay scale benefits under wage settlements if the employee was in service on the cut-off date. The court mandates 6% interest on delayed arrears, reinforcing service law protections for posthumous entitlements in public sector employment.
MP High Court rules that wound-up corporations remain liable to pay 6% annual interest on belated retiral dues from retirement date until payment, regardless of financial constraints. The judgment reinforces that delayed settlement beyond 3-5 years is unreasonable, protecting public sector employees under the Employee Pension Scheme 1995.
Employers must recalculate gratuity arrears for employees whose service ended after 29 March 2018 under the enhanced Rs.20 lakh ceiling, with 6% interest from the due date. The ruling clarifies the retroactive effect of the 2018 amendment, impacting pending and future gratuity claims.
Punjab and Haryana High Court holds that transfer of CPF balances to EPF constitutes a supervening event mandating reassessment of employer liability under the EPF Act.
Madhya Pradesh High Court holds that compulsory retirement does not forfeit earned leave encashment; Regulation 67 does not nullify accumulated leave under Regulation 61(4).
Madhya Pradesh High Court holds that dearness allowance must be included in wage calculation for gratuity under Section 2(s) of the Payment of Gratuity Act, 1972.