Controlling Authority under the Payment of Gratuity Act (State Government – Central)

The Controlling Authority under the Payment of Gratuity Act, 1972 is a quasi judicial body created for adjudicating the dispute, if any, in terms of payment of gratuity. Generally the Assistant Labour Commissioner is appointed as the Controlling Authority and the hearing is held in the Office of the Labour Commissioner. An employee Under Section 2(e) of the Payment of Gratuity Act, 1972 who is entitled to gratuity, but has been denied the gratuity by the employer Under Section 2(f) of the Payment of Gratuity Act, 1972, can file a claim Under Section 8 of the Payment of Gratuity Act, 1972 against the company. The Controlling Authority has the power to direct the company to pay the outstanding gratuity payable to the employee along with interest. The office of the Labour Commissioner has district wise jurisdiction and each office of the Labour Commissioner has more than one Controlling Authority dealing with disputes related to payment of gratuity.

The Controlling Authority (Central) under the Payment of Gratuity Act, 1972 holds the hearing at Kolkata office (Nizam Palace) covering the entire jurisdiction of West Bengal. The only difference between a State Government Controlling Authority and a Central Government Controlling Authority is that, the later covers all the companies whose ‘appropriate government’ is the Central Government Under Section 2(a) of the Payment of Gratuity Act, 1972.

Once an order is passed by the Controlling Authority directing the company to pay the outstanding gratuity to the employee, the aggrieved company can challenge the order by way of filing an appeal Under Section 7 of the Payment of Gratuity Act, 1972 within sixty days ordinarily from the date of receipt of the order before Appellate Authority under the Payment of Gratuity Act, 1972.