| It Includes : (a) Wages |
| (b) Bonus |
| (c) Gratuity |
| (d) Remuneration |
| |
| Payment of Gratuity Act, 1972 |
| Short Title, Extent and Application |
 |
This act may be called the Payment of Gratuity Act, 1972. |
|
It extents to the whole of India: |
| |
provided that in so far as it relates to plantations or ports, it shall not extends to the state of Jammu and Kashmir. |
|
It shall apply to - |
| |
 |
Every factory, mine, oilfield, plantation, port, and railways company ; |
|
Every shop or establishment within the 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, on any day of the preceeding twelve months; |
|
Such other establishments or class of establishments, in ehich ten or more employees are employed, or were |
| |
employed, on any day of the preceeding twelve months, as the Central Government may, by notification, specify in |
| |
this behalf. |
|
|
It shall come into force on such date as the Central Government may, by notification, appoint. |
| |
| Introduction |
| The law relating to payment of gratuity is governed by the following Act/Rules: |
|
Payment of gratuity Act, 1972 |
|
Payment of Gratuity (Central) Rules, 1972 |
| |
| Objective of the Act |
| The objective of the act is to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, |
| plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto. |
| |
| The significance of this legislation lies in the acceptance of the principle of gratuity as a compulsory, statutory retrial benefit. |
| |
| Applicability of the Act |
| The act is applicable to : |
|
Every factory, mine, oilfield, plantation, port and railway company. |
|
Every shop or establishment within the 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 on any day of the preceding twelve months. |
|
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 notify. |
| |
| Obligations of the Employer |
|
Registration with controlling Authority. |
|
Obtaining Insurance Policy |
|
Obtaining nominations |
|
Liability for Payment of Gratuity |
|
Settlement of Gratuity Liability |
|
Submission of notices |
|
Display of notice |
|
Claims against the employer |
| |
|
| Offences & Penalties |
| Penalties for certain offences-Any employer who : |
|
Incase of failure on the part of the employer to pay insurance premium or contribute to gratuity fund, the employer shall be |
| |
liable to pay the amount gratuity together with interest to the controlling authority. In case of failure to deposit the money with |
| |
the controlling authority, the person shall be punishable with fine which may extend to ten thousand rupees and in case of |
| |
continuing offence with a further fine which may extend to one thousand rupees for each day during which the offence continues |
