Payment Of Gratuity Act 1972

APPLICABILITY OF ACT

Every factory, mine, oilfield, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more persons
Sec. 1

WAGES FOR CALCULATION

@15 days' wages for every completed year as if the month comprises of 26 days at the last drawn wages
Sec. 2(s)

CALCULATION PLACE-RATED EMPLOYEE

@ 15 days' wages for every completed year on an average of 3 months' wages Sec. 4CALCULATION SEASONAL EMPLOYEE

CALCULATION SEASONAL EMPLOYEE

@ 7 days' wages for every completed year of service
Sec. 4

Employee
  • All employees Irrespective of status or salary
Sec. 2(e)
Entitlement
  • On completion of five years’ service except in case of death or disablement
Sec.2(e)
Nomination
  • To be obtained by employer after expiry of one year’s service, in Form F.
Sec. 6 Rule 6
Qualifying Period
  • On rendering of 5 years’ service, either termination, resignation or retirement

Sec. 2(e)

Total Celling
  • Rs. 3,50,000 /li>

Sec. 4(3)

Mode of Payment
  • Cash or, if so desired, by Bank Draft or Cheque
  • Rule. 9

Protection of Gratuity
  • Can not be attached in execution of any decree
Sec. 13
Forfeiture of Gratuity
  • On termination of an employee for moral turpitude and riotous or disorderly behavior.
  • Wholly or partially for wilfully causing loss, destruction of property,etc
Sec. 4(6)
Recovery of Gratuity
  • To apply within 30 days in Form I when not paid within 30 days
Sec. 8, Rule 8
Display of Notice
    • On conspicuous place at the main entrance in English language or the language understood by majority of employees of property, etc

Rule. 4

Penalties
    • Imprisonment for 6 months or fine upto Rs.10,000 for avoiding to make payment by making false statement or representation
    • Imprisonment not less than 3 months and upto one year with fine on default in complying with the provisions of Act or Rules.

Sec. 9

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