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by:

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A kind of retirement benefit.

It is a payment that is intended to help an employeeafter his retirement.

General principle - for faithful service over a longperiod the employee is entitled to claim a certain

amount as retirement benefit.Earned by an employee for long & meritorious

service.

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Proposal for enactment was discussed in:

LabourMinisters Conference {Aug 24 & 25} Indian Labour Conference {Oct 22 & 23}

A bill was passed as the Payment Of Gratuity Act1972.

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In relation to an establishment:

a) Belonging to, or under the control of CentralGovernment.

b) Having branches in more than one state.

c) Of a major port, mine, oilfield or railway company,the Central Govt.

In any other case, the State Government.

an authority appointed by the

appropriate govt.

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The Act applies to the whole of India.

The Act applies to:

Every mine , factory, oilfield, plantation, port &

railway company.

Every shop or establishment in which 10 or more

persons are employed. The Act does not apply to:

Persons who hold civil Posts under the Central

Government or State Government.

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It is a payment that is intended to help an

employee after his retirement whether the retirementis due to super-annuation or due to some physical

disability.

Formula Of Gratuity =(Last Month Wages*15*No. of Services)/26

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Gratuity should be paid to an employee on the

termination of his employment after he has renderedservice for not less than 5 yrs -

on his super-annuation

his retirement

his resignation

on his death or disablement due to disease oraccident

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Completion of continuous services of five years is notnecessary when the termination of employee is due todeath of disablement.

In case of death of employee gratuity payable to him ispaid to his nominee.

2. For every completed year of service or part, the employer

shall pay gratuity to the employee at the rate of fifteen

days wages based on the rate of the wags last drawn by

the employee concerned.

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3. The amount of gratuity payable to an employee

shall not exceed three lakhs and fifty thousand rupees.

4. Nothing in this section shall affect the right of

an employee to receive better terms of gratuityunder any award or agreement or contract with

the employer.

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1. If an employee has a family at the time of making

a nomination, the nomination shall be made in

favor of one or more member of his family .

If any nomination is made by an employee in favor

of a person who is not the member of his family,

shall be void.

If an employee has no family at the time of

making a nomination, the nomination shall be

made in favor of any person or persons

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If the employee acquires a family after making anomination then such nomination become invalid,

and a fresh nomination is made in favor of a family

member.

Every nomination , fresh nomination or

alternation of nomination shall be sent by the

employee to his employer, who shall keep it in his

safe custody.

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An employee who is eligible for payment ofgratuity can give an application in writing tothe employer within 30 days from the date thegratuity becomes payable.

.

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Employer determine the amount of the gratuityand give notice to controlling authority and theemployee.

Employer pay the amount of gratuity to theemployee.

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Interest is paid if the amount of gratuity is notpaid within a period of 30 days at the rate notifiedby central government.

If disputes arises regarding the amount of thegratuity and the claim taken by nominee theemployer deposit the amount to the controlling

authority, and he solve the dispute.

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Appointed by the Government for the purpose ofthis act.

Two or more inspector can be appoint for the same

area.

Every Inspector shall be deemed to be a publicservant within the meaning of section 21, of the

Indian Penal Code, 1860.

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Ask for any information from the employer.

Examining any register, record or notice or other

documents.

Search and seize register, record, notice or otherdocument in respect of offence;

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(1) Whoever, for the purpose of avoiding any payment to be

made by himself under this Act or of enabling any otherperson to avoid such payment, knowingly makes or causes to

be made any false statement or false representation shall be

punishable with imprisonment for a term which may extend

to six months, or with fine which may extend to ten thousand

rupees or with both.

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2)An employer who contravenes, or makes default in

complying with, any of the provisions of this Act orany 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

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Where an employer is charged with an offence punishable

under this Act, he shall be entitled, upon complaint duly

made by him and on giving to the complainant not less than

three clear days notice in writing of his intention to do so, to

have any other person whom he charges as the actual offender

brought before the court at the time appointed for hearing thecharge; and if, after the commission of the offence has been

proved, the employer proves to the satisfaction of the court

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No gratuity payable under this Act and no gratuity

payable to an employee employed in anyestablishment, factory, mine, oilfield, plantation,

port, railway company or shop exempted under

section shall be liable to attachment in execution of

any decree or order of any civil, revenue or criminal

court.

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.

The appropriate Government may, by notification

make rules for the purpose of carrying out the

provisions of this Act.

Every rule made by the Central Government under

this Act shall be laid, as soon as may be after it is

made, before each House of Parliament while it is in

session.

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Thank you