Gujarat Gratuity Non Payment Case on VLCC Healthcare & Wellness Center

Gujarat Labour Department initiates action against  VLCC Healthcare & Wellness Center for Non Payment of Gratuity dues

Gandhinagar, Gujarat, India, Tuesday, June 8, 2021: The Labour & Employment Department (LED) of Gujarat Government has initiated legal proceedings against VLCC Healthcare & Wellness center located at Baleswar Square, S.G. Highway, Ahmedabad for non-payment of gratuity dues to their employees. VLCC is a well known brand in health and segment.

The order was passed by Additional Chief Secretary Vipul Mittra IAS to register criminal case against VLCC for non payment of Gratuity.

Complaints received to Labour department from employees about firm about non-clearing dues like gratuity 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, confirmed that they either had delayed the payment of gratuity or were not paying gratuity at all.

Criminal case will be filed under section 9 read with section 11 of the Payment of Gratuity Act, 1972 with penalty provision, an employer who contravenes, or makes default 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 ten thousand rupees but which may extend to twenty thousand rupees, 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 VipulMittra said.

Labour dept. already took further legal actions to nine firms in October and eight firms in December were found non-payment of gratuity dues in Ahmedabad, Rajkot Surat and other districts like 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.