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This Act may be cited as the Payment of Gratuity Act, No of , and (a) shall be entitled to the payment of a gratuity under section 2, in a sum equiva-. An Act to provide for a scheme for the payment of gratuity to employees engaged (3-A) A shop or establishment to which this Act has become. An Act to provide for a scheme for the payment of gratuity to employees . 2 Substituted by the Payment of Gratuity (Amendment) Act, (

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Gratuity Act Pdf

Amendment of section 20 of Act of Appointment of local authority officers and employees. Grant of gratuity in respect of service. Civil Service Regulation Act (as amended) . Employees where a death gratuity is payable to his or her surviving spouse or civil partner. conditions, be entitled to receive a “Death Gratuity” payable as a lump In calculating the Death Gratuity, Section 30(1)(a) of the Act and.

CA Sunil C. It is paid for long and meritorious services rendered by an employee. With enactment of Payment of Gratuity Act, , gratuity payment has become mandatory and in case of non application of gratuity Act, the employee can claim gratuity under terms of contract of employment. Employees engaged in factories, mines, oilfields, plantations, ports, railway companies, 2. Every shop or establishment within meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months; 3. Such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf. Central government notification: — Central government by virtue of clause c has specified Motor transport undertakings, Clubs, chambers of commerce and industry, Institutions, societies, Trusts and circus industry in which 10 or more persons are employed or were employed on any day of the preceding 12 months, as classes of establishments to which the Act shall apply. Ahmedabad PVT. Primary Teachers Association V Administrative officer, LLJ [ SC]:— held teachers were held to be not an employee under the definition of employee Now the definition of employee has been widened to include any person, employed to do any kind of work. Thus the definition includes a teacher as an employee under the Act. The payment of Gratuity Amendment Act Therefore every employee will become eligible for gratuity irrespective of his wage level.

Kothari Industrial Corporation V. Appellate Authority Mere absence from duty without leave cannot be said to result in breach of continuity of service for purpose of this act.

The Payment of Gratuity Act, 1972

Continuous service: — According to section 2A, for purposes of Act 1. An employee is said to be in continuous service for a period if he has for that period been in uninterrupted service including service which may be interrupted on account of accident, sickness, leave, absence from duty without leave, layoff, strike or a lock-out or cessation of work not due to any fault of employee.

For said period of six months, if employee during the period of six calendar months preceding date with reference to which calculation is to be made, has actually worked under employer should be half the number of days actually worked which constitute continuous service for period of one year i. Employee of seasonal establishment is not in continuous service within meaning of clause 1 of above for any period of one year or six months, he shall be deemed to be in continuous service under employer for such period if he is actually worked for at least seventy five percent of number of days on which establishment was in operation during such period.

Service is not continuous in case of legal termination of service and subsequent re-employment.

In Section 10 10 of income tax Act, the gratuity limit also increased from Rs 3. Therefore the right of forfeiture is limited to extent of damage. Section 4 6 b :- deals with a case where the services of an employee have been terminated 1.

For riotous and disorderly conduct or any other act of violence on his part, or 2. Partial forfeiture of gratuity Vs total forfeiture of gratuity: — In section 4 6 a gratuity is limited to extent of damage where as in section 4 6 b gratuity may be wholly or partially forfeited. Bharat gold mines Ltd Vs Regional Commissioner held gratuity stands fully forfeited in terms of section 4 6 b where offence of theft committed by employee under law involving moral turpitude.

Therefore, where service has not been terminated on any of the above grounds, the employer cannot withhold gratuity due to the employee. Travencore Plywood Ind v.

The Payment of Gratuity Act, 1972

Therefore refusal of an employee to surrender the occupied land belonging to company is not sufficient ground to withhold gratuity under section 4 6 of payment of gratuity Act, Air India v. Authority under the Act CLA 34 held gratuity cannot be withheld for non vacation of service quarters by retiring employees.

Wazir Chand vs.

Union of India held employee after superannuation continued to occupy quarter of company for six months. But in case of shops or establishments other than those stated before, it applies to those organisations with 10 or more persons are employed on any day of the preceding 12 months.

Under Section 1 3-A , if in case of any shop and establishment to which the act applies the number of employee reduces below 10, it shall continue to be governed by the act irrespective of the number of employee's. Thus no employer can escape liability under this act by reducing the number of employee's.

Payment of gratuity act 1972 pdf

Under Section 2 e , Nothing in this act applies to Apprentices and Persons who hold civil posts under the Central Government or State Government and are subjected to any other act or rule other than this act. Payment of gratuity: eligibility and calculation Under Section 4 , payment of gratuity is mandatory. Gratuity shall be payable to an employee on termination of employment after he has rendered continuous service for not less than 5 years in a single organisation.

Retirement or Resignation. On Death or Disablement due to accident or disease. As per Section 4 1 , the completion of continuous service of 5 years is not required where termination of employment is due to death or disablement.

Know About Payment of Gratuity Act

In such case mandatory gratuity is payable. Gratuity is paid at a rate of 15 days wages for every completed year of service or part thereof in excess of Six months.

The wages here means wages last drawn by the employee.

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