05-07-2012, 12:54 PM
The Payment of Gratuity Act,1972
the payment of gratuity act.ppt (Size: 66 KB / Downloads: 58)
Scope of Coverage
The act applies to-
(a) Every factory, mine, oilfield, plantation, port and railway company.
(b) Every shop or establishment in a state, in which 10 or more persons are/were employed on any day of the preceding 12months.
© Such other establishments, or class of establishments, in which 10 or more employees are/were employed on any day of preceding 12months, as the central government may, by notification published in the Official Gazette specify in his behalf [Sec.1 (3)]. Municipalities are covered by this Sec.
The act applies to the educational institutions in which 10 or more persons are/were employed during the preceding 12months as per central govt. notification dated 3rd April 1997.
Payment of Gratuity
Gratuity payable on termination of employment- it becomes an obligation on an employer to pay gratuity to the employee on termination of his employment provided the employee has rendered continuous service for not less than 5 years . Gratuity is payable to an employee:
on his superannuation
On his retirement or resignation
On his death or disablement due to accident or diseases.
Gratuity after death or disablement- the completion of continuous service of 5 years shall not be necessary where the termination of the employment of any employee is due to death or disablement. And the gratuity is payable to an employee's nominee in case of his death. If no nominee is their then the gratuity shall be paid to his heirs.
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 Sec. 5 shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal Court.
Sec. 60 (g) of the Civil Procedure Code, 1908 also makes a similar provision. However, gratuity payable to the heirs of an employee on his death is attachable.
Application for gratuity
An employee who is eligible for payment of gratuity under the Act, or any person authorized in writing, to act on his behalf, should send a written application to the employer.
within 30 days from date the gratuity became payable.
When the date of superannuation or retirement of an employee is known, the employee may apply to the employer before 30 days of the date of superannuation or retirement.
When gratuity becomes payable, application may also be made by the nominee of the employee or the legal heir within the time prescribed [30 days in case of nominee and 1 year in case of legal heir].