The Madras High Court has said that retired employees of religious institutions where 10 or more persons are employed at any time, after the commencement of the Payment of Gratuity Act, 1972, are entitled to apply for gratuity and these institutions would have to make the payment within 30 days.
A division bench of Justices M. Venugopal and P. D. Audikesavalu, which reserved its order in the appeal of the State against a single judge order in the principal seat in Chennai and delivered it in the Madurai Bench, observed that gratuity should be paid from the date it falls due, failing which interest would have to be paid under Section 7(3A) of the Payment of Gratuity Act, 1972, in addition to penal action under Section 9 of the Act.
The State government had filed an appeal against the order of a single judge.
The Tamil Nadu Temples’ Retired Employees’ Welfare Association had earlier filed a petition seeking payment of gratuity to temple employees before a single judge.
Court fiat
The division bench also directed the Commissioner, Hindu Religious and Charitable Endowments, to identify and publish annually, starting from January 2018, the list of institutions with 10 or more employees. The retired employees could claim gratuity from their respective religious institutions. In the event of refusal to do so or if any dispute arises regarding the quantum of gratuity, the retired employees could seek redress from the institutions by making claims before the controlling authority.