8 companies in legal soup

Gandhinagar: The state labour and employment department has initiated legal proceedings against eight establishments in Ahmedabad, Surat, Vadodara and Valsad for non-payment of gratuity dues to their employees.

Complaints were received by the department from employees and unions about firms not 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.

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

Show-cause notices have also been 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. Earlier, in October, the labour department had initiated legal action against nine firms in Ahmedabad, Gandhinagar & Surat for non-payment of gratuity.

“We initiated legal action under Payment of Gratuity Act against erring firms,” ACS Vipul Mittra said.

Under sections 9 and 11 of the Payment of Gratuity Act, 1972, an employer who contravenes, or makes default in complying with, any of the provisions of the act, will be punishable with imprisonment for a term which can extend up to a year and fine which can extend up to Rs 20,000, or both.


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