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Initiated by Gujarat labour department, Wellness centre faces legal action for ‘not paying gratuity dues’

The department had received complaints from employees about the firm not clearing gratuity dues under the Payment of Gratuity Act, 1972.

By: Express News Service | Ahmedabad |
Updated: June 9, 2021 3:47:02 am
The labour department took legal action against nine firms in October 2020 and eight other firms in December 2020 for non-payment of gratuity dues in Ahmedabad, Rajkot, Surat and other district.

The Labour & Employment department of the Gujarat Government has initiated legal proceedings against VLCC Healthcare & Wellness Center in Ahmedabad for non-payment of gratuity dues to their employees.

The order to register a criminal case against VLCC was passed by Additional Chief Secretary Vipul Mittra, stated an official statement from the government on Tuesday. Officials said 12 employees of the firm, including eight women, did not receive gratuity.

The department had received complaints from employees about the firm not clearing gratuity dues under the Payment of Gratuity Act, 1972.

Show-cause notices were issued to VLCC Healthcare & Wellness Center, Ahmedabad branch, after checks conducted by the officer of labour department that confirmed either delayed payment or non-payment of gratuity.

Criminal case will be filed under section 9 read with section 11 of the Payment of Gratuity Act, 1972. An employer who contravenes, or defaults 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 Rs 10,000 but which may extend to Rs 20,000, or with both.

“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 stated.

The labour department took legal action against nine firms in October 2020 and eight other firms in December 2020 for non-payment of gratuity dues in Ahmedabad, Rajkot, Surat and other district. These firms included Kataria Automobiles, Ahmedabad, Teamlease- L&T, Rajkot; D.G. Nakrani GMERS hospital, Vadodara; Ekta prints Pvt Ltd., Surat and Creative Tex Mills Pvt Ltd, Valsad etc, the release added.

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