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    Payment of Gratuity Act, 1972: Nishtha Sharma Puja Mittal Ritika Khanna Shivangi Verma Sonal Agarwal

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    Aditya
    The Payment of Gratuity Act of 1972 provides for a retirement benefit called a gratuity for employees in India. The Act applies to shops or establishments with 10 or more employees. It requires employers to pay gratuity to employees who have worked for at least 5 years at 15 days' wages for each completed year of service. The maximum gratuity payable is Rs. 3.5 lakhs. The Act establishes rules for nomination, determination of gratuity amounts, recovery of unpaid gratuity, penalties for non-compliance, and exemption of employers from liability in some cases.

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    Payment of Gratuity Act, 1972: Nishtha Sharma Puja Mittal Ritika Khanna Shivangi Verma Sonal Agarwal

    Uploaded by

    Aditya
    390 views23 pages
    The Payment of Gratuity Act of 1972 provides for a retirement benefit called a gratuity for employees in India. The Act applies to shops or establishments with 10 or more employees. It requires employers to pay gratuity to employees who have worked for at least 5 years at 15 days' wages for each completed year of service. The maximum gratuity payable is Rs. 3.5 lakhs. The Act establishes rules for nomination, determination of gratuity amounts, recovery of unpaid gratuity, penalties for non-compliance, and exemption of employers from liability in some cases.

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    Gratuity Act

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    The Payment of Gratuity Act of 1972 provides for a retirement benefit called a gratuity for employees in India. The Act applies to shops or establishments with 10 or more employees. It requires employers to pay gratuity to employees who have worked for at least 5 years at 15 days' wages for each completed year of service. The maximum gratuity payable is Rs. 3.5 lakhs. The Act establishes rules for nomination, determination of gratuity amounts, recovery of unpaid gratuity, penalties for non-compliance, and exemption of employers from liability in some cases.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    390 views23 pages

    Payment of Gratuity Act, 1972: Nishtha Sharma Puja Mittal Ritika Khanna Shivangi Verma Sonal Agarwal

    Uploaded by

    Aditya
    The Payment of Gratuity Act of 1972 provides for a retirement benefit called a gratuity for employees in India. The Act applies to shops or establishments with 10 or more employees. It requires employers to pay gratuity to employees who have worked for at least 5 years at 15 days' wages for each completed year of service. The maximum gratuity payable is Rs. 3.5 lakhs. The Act establishes rules for nomination, determination of gratuity amounts, recovery of unpaid gratuity, penalties for non-compliance, and exemption of employers from liability in some cases.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    of 23

    Payment Of Gratuity Act,

    1972

    by:

    Nishtha Sharma

    Puja Mittal
    Ritika
    Khanna
    Shivangi
    Verma
    Sonal
    Gratuity
     A kind of retirement benefit.
     It is a payment that is intended to help an
    employee after his retirement.
     General principle - for faithful service over a
    long period the employee is entitled to claim
    a certain amount as retirement benefit.
     Earned by an employee for long &
    meritorious service.
    Enactment of
    Payment of Gratuity Act
    {1972}
     Proposal for enactment was discussed in:
    • Labour Minister’s Conference {Aug 24 &
    25}
    • Indian Labour Conference {Oct 22 & 23}

     A bill was passed as the Payment Of Gratuity


    Act 1972.
    Definitions
     “Appropriate Govt.”
    • In relation to an establishment:
    a) Belonging to, or under the control of Central Government.

    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.
     “Controlling Authority”-an authority appointed by the
    appropriate govt.
    Scope And Coverage
     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.


    Payment of Gratuity
    It is a payment that is intended to help an
    employee after his retirement whether the
    retirement is due to super-annuation or due to
    some physical disability.
    Formula Of Gratuity =(Last Month Wages
    *15*No. of Services)/26
    Payment of Gratuity
    1. Gratuity should be paid to an employee on
    the termination of his employment after he
    has rendered service for not less than 5 yrs -
     on his super-annuation
     his retirement
     his resignation
     on his death or disablement due to disease or
    accident
    Payment of Gratuity
    Condition:-
     Completion of continuous services of five years is not
    necessary when the termination of employee is due to
    death of disablement.
     In case of death of employee gratuity payable to him is
    paid 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.
    Payment of Gratuity
    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 gratuity under any award or agreement or
    contract with the employer.
    Nomination
    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 .
    2. If any nomination is made by an employee in
    favor of a person who is not the member of his
    family, shall be void.
    3. 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
    Nomination
    4. If the employee acquires a family after
    making a nomination then such nomination
    become invalid, and a fresh nomination is
    made in favor of a family member.
    5. 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.
    Determination of the Amount of
    Gratuity (Sec.7)
    •Application for gratuity[sec7(1)]:
    An employee who is eligible for payment
    of gratuity can give an application in
    writing to the employer within 30 days
    from the date the gratuity becomes
    payable.
    .
    Determination of the
    Amount of Gratuity (Sec.7)
     Determination of gratuity [Sec7(2)]:
    Employer determine the amount of the gratuity and
    give notice to controlling authority and the employee.
     Payment of gratuity[sec7(3)]:
    Employer pay the amount of gratuity to the
    employee.
    Determination of the
    Amount of Gratuity (Sec.7)
     Payment of interest[sec7(3A)]:
    Interest is paid if the amount of gratuity is not paid
    within a period of 30 days at the rate notified by
    central government.
     Dispute as to Gratuity[sec7(4)]:
    If disputes arises regarding the amount of the
    gratuity and the claim taken by nominee the
    employer deposit the amount to the controlling
    authority, and he solve the dispute.
    Inspectors(Sec.7A)

     Appointed by the Government for the


    purpose of this act.
     Two or more inspector can be appoint for the
    same area.
     Every Inspector shall be deemed to be a
    public servant within the meaning of section
    21, of the Indian Penal Code, 1860.
    Powers of the Inspectors(Sec
    7B)

     Ask for any information from the employer.


     Examining any register, record or notice or
    other documents.
     Search and seize register, record, notice or
    other document in respect of offence;
    Recovery of Gratuity(Sec 8)

     Controlling authority issued certificate to the


    collector on behalf of aggrieved party.
     Collector recover the amount together with
    compound interest.
     Amount of interest should not exceed the
    amount of gratuity.
    Penalties
    (1) Whoever, for the purpose of avoiding any payment to be
    made by himself under this Act or of enabling any other
    person 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.
    Penalties
    2) 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
    Exemption of employer from liability

    In certain cases
     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 the charge;
    and if, after the commission of the offence has been
    proved, the employer proves to the satisfaction of the
    court
    Protection Of Gratuity
     No gratuity payable under this Act and no
    gratuity payable to an employee employed in
    any establishment, 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.
    Power to make
    rules.
     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.
    Thank you

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