Payment of gratuity act 1972

Introduction Payment of Gratuity Act 1972 was enacted in order to provide a scheme for payment of gratuity to various class of employees, engaged in factories, oilfields, mines, railways, ports, plantations, shops or any other forms of establishments. Gratuity is a lump sum amount paid to an employee at the time of his retirement, by the employer. It can be considered as a retirement benefit. This Act extends to the whole of India. However, in case of plantations or ports, it shall not not extend to the State of Jammu & Kashmir. Table of Contents • • • • • • • • Eligibility of payment of gratuity Under the Payment of Gratuity Act 1972, an employee must complete minimum 5 years of service in order to be eligible for gratuity. There is a rounding off rule in the last year of service period of employee. Any period more than 6 months in the last year of service shall be rounded off to 1 whole year. Example: 4 years 6 months 1 day of service, shall be rounded off as 5 years for the purpose of calculation of gratuity. In case of death or disablement of employee, 1 year of service shall be sufficient to be eligible for gratuity. Applicability Payment of Gratuity Act applies to every factory AND any establishment where 10 or more workers/employees are working at any time during the financial year. This act also applies to any port, oilfield, plantation, mine or railways irrespective of the number of workers working there. How much should the employee’s salary be, in order to be el...

The Payment of Gratuity Act, 1972 is an Indian law that makes companies pay a one-time gratuity to retired employees or an employee who resigns after a minimum of 5 years of service. The law applies to all companies of at least 20 employees. The gratuity is 15 days' wages for every year of employee service, or partial year over six months. Background [ ] In Indian Hume Pipe Co Ltd v Its Workmen that the general principle underlying a gratuity scheme is that by service over a long period the employee is entitled to claim a certain amount as a retirement benefit. The Payment of Gratuity Act was passed by the Application and extent [ ] The act applies to all factories, mines, oilfields, plantations, ports and railway companies. But in the case of shops or establishments, other than those stated before, it applies to those organisations with 10 or more people employed on any day of the preceding 12 months. If the number of employee is below 10, the employer must still pay gratuities. Thus, no employer will be able to refuse gratuity under this act based on the number of employees. The act does not applies to apprentices and persons who hold civil posts under the Central Government or State Governments and are subjected to any other act or rule other than this act. Payment of gratuity: Eligibility and calculation [ ] Under Section 4, payment of gratuity is mandatory. Gratuity is paid at a rate of 15 days' wages for every completed year of service or part thereof in excess of si...

Payment of Gratuity Act, 1972 No.39 of 1972 Contents Sections Particulars 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 [21st August, 1972 ] An Act 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. Be it enacted by Parliament in the Twenty-third Year of the Republic of India as follows:-

The Payment of Gratuity Act 1972:- Gratuity is a voluntary Payment made by the employer to the employee in recognition of continuous, meritorious services and sincere efforts by the employee towards the organization.It is governed under the Payment of Gratuity Act 1972.It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, Oilfields, plantations, ports, railway companies, and shops or other establishments. Applicability:-As per the Gratuity Act, the scheme for the payment of gratuity is available to: • Employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental with. • 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, or were employed, on any day of the preceding twelve months; • Such 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, by notification, specify in this behalf. Employee :-The term “employee” is defined in Section 2(e) of the Act as any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a facto...

Gratuity Act 1972 Before the implementation of gratuity payment, there was really no incentive for the employee to provide efficient work to expand and develop the company’s products. The Payment of Gratuity Act of 1972 provided a silver lining for employees so that they could earn more and optimize their personal efforts in making a difference in their life beyond office borders. So, the 1972 Gratuity Act was enacted to reward employees with a gratuity amount. This is a cash prize for their contributions to companies., oilfields, shops, factories, and so on. Guidelines of the Gratuity Act 1972 Employers give gratuity sums to their workers as a gesture of recognition for their services to the firm under the 1972 Payment of Gratuity Act. It’s a monetary compensation offered to retired personnel of mines, industries, oilfields, plantations, ports, and so on. This Gratuity Act also includes a provision for children. The supreme authority must send the gratuity cash to the appropriate bank account set for the convenience of the minor in question until they reach the age of majority and have access to the record and balance. Moreover, this Act also provides for the employment of up to 6 months. Here, the gratuity sum will be calculated by dividing 15 days of earnings by the rate of salary collected on the final day concerned. However, any overtime pay-out should not be included in the organisation’s gratuity sum. Also, the gratuity amount cannot exceed the limit of ten lakh rup...

The Payment of Gratuity Act, 1972 is an Indian law that makes companies pay a one-time gratuity to retired employees or an employee who resigns after a minimum of 5 years of service. The law applies to all companies of at least 20 employees. The gratuity is 15 days' wages for every year of employee service, or partial year over six months. Background [ ] In Indian Hume Pipe Co Ltd v Its Workmen that the general principle underlying a gratuity scheme is that by service over a long period the employee is entitled to claim a certain amount as a retirement benefit. The Payment of Gratuity Act was passed by the Application and extent [ ] The act applies to all factories, mines, oilfields, plantations, ports and railway companies. But in the case of shops or establishments, other than those stated before, it applies to those organisations with 10 or more people employed on any day of the preceding 12 months. If the number of employee is below 10, the employer must still pay gratuities. Thus, no employer will be able to refuse gratuity under this act based on the number of employees. The act does not applies to apprentices and persons who hold civil posts under the Central Government or State Governments and are subjected to any other act or rule other than this act. Payment of gratuity: Eligibility and calculation [ ] Under Section 4, payment of gratuity is mandatory. Gratuity is paid at a rate of 15 days' wages for every completed year of service or part thereof in excess of si...

Gratuity Act 1972 Before the implementation of gratuity payment, there was really no incentive for the employee to provide efficient work to expand and develop the company’s products. The Payment of Gratuity Act of 1972 provided a silver lining for employees so that they could earn more and optimize their personal efforts in making a difference in their life beyond office borders. So, the 1972 Gratuity Act was enacted to reward employees with a gratuity amount. This is a cash prize for their contributions to companies., oilfields, shops, factories, and so on. Guidelines of the Gratuity Act 1972 Employers give gratuity sums to their workers as a gesture of recognition for their services to the firm under the 1972 Payment of Gratuity Act. It’s a monetary compensation offered to retired personnel of mines, industries, oilfields, plantations, ports, and so on. This Gratuity Act also includes a provision for children. The supreme authority must send the gratuity cash to the appropriate bank account set for the convenience of the minor in question until they reach the age of majority and have access to the record and balance. Moreover, this Act also provides for the employment of up to 6 months. Here, the gratuity sum will be calculated by dividing 15 days of earnings by the rate of salary collected on the final day concerned. However, any overtime pay-out should not be included in the organisation’s gratuity sum. Also, the gratuity amount cannot exceed the limit of ten lakh rup...

Introduction Payment of Gratuity Act 1972 was enacted in order to provide a scheme for payment of gratuity to various class of employees, engaged in factories, oilfields, mines, railways, ports, plantations, shops or any other forms of establishments. Gratuity is a lump sum amount paid to an employee at the time of his retirement, by the employer. It can be considered as a retirement benefit. This Act extends to the whole of India. However, in case of plantations or ports, it shall not not extend to the State of Jammu & Kashmir. Table of Contents • • • • • • • • Eligibility of payment of gratuity Under the Payment of Gratuity Act 1972, an employee must complete minimum 5 years of service in order to be eligible for gratuity. There is a rounding off rule in the last year of service period of employee. Any period more than 6 months in the last year of service shall be rounded off to 1 whole year. Example: 4 years 6 months 1 day of service, shall be rounded off as 5 years for the purpose of calculation of gratuity. In case of death or disablement of employee, 1 year of service shall be sufficient to be eligible for gratuity. Applicability Payment of Gratuity Act applies to every factory AND any establishment where 10 or more workers/employees are working at any time during the financial year. This act also applies to any port, oilfield, plantation, mine or railways irrespective of the number of workers working there. How much should the employee’s salary be, in order to be el...

Payment of Gratuity Act, 1972 No.39 of 1972 Contents Sections Particulars 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 [21st August, 1972 ] An Act 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. Be it enacted by Parliament in the Twenty-third Year of the Republic of India as follows:-

The Payment of Gratuity Act 1972:- Gratuity is a voluntary Payment made by the employer to the employee in recognition of continuous, meritorious services and sincere efforts by the employee towards the organization.It is governed under the Payment of Gratuity Act 1972.It is an Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, Oilfields, plantations, ports, railway companies, and shops or other establishments. Applicability:-As per the Gratuity Act, the scheme for the payment of gratuity is available to: • Employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental with. • 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, or were employed, on any day of the preceding twelve months; • Such 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, by notification, specify in this behalf. Employee :-The term “employee” is defined in Section 2(e) of the Act as any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a facto...