Alamkara theory by Bhamaha Indian Poetics (1).pptx
Payment of gratuity act 1972
2. • Latin word – Gratuitous
• Gratuity means a lump sum payment made by an
employer as the retrial reward for his past service when
his employment is terminated
4. except
Shop and establishment covered under SHOPS AND
ESTABLISHMENT ACT- 10 or more persons - immediately
preceding to 12 months.
Once this act applies – continue to be governed –
irrespective of no of persons
It shall come into force on such date as the central government
may by notification , appoint
5. Employee does not include- holds post under central
or state government
Teacher cannot be called as employee due to amendment
of this act
6. Continuous Service” means uninterrupted service
which may be interrupted on account of sickness ,
accident , leave , absence from duty without leave(not
being treated as break in service),lay-off , strike , lock-
out or cessation of work not due to the fault of the
employee.
Whether such uninterrupted or interrupted service
was rendered before or after the commencement of the
Act
7. If an employee is not in continuous service within the meaning
of CLASS-1 he shall deemed to be in continuous service.
For a period of 1 year :
190 Days, if the employee was employed below the
ground in a mine
190 Days ,if the employee was employed in an
establishment which works for less than 6 days in a week
240 Days, in any other case
8. For a period of 6 months :
95 Days , if the employee was employed below
the ground in a mine
95 Days , If the employee was employed in an
establishment which works for less than 6 days in a
week
120 Days , In any other case
9. Gratuity is payable when there is :-
Continuous service of 5 yrs(not necessary incase of death or
disablement)
Incase of death ,the amount shall be paid to nominee or legal heir
Time limit- Within 30 days of gratuity becoming payable
Maximum Amount-The gratuity payable to an employee shall not
exceed Rs. 10,00,000
10. It is mandatory where number of employees is more
than 500
The registration shall be done in prescribed time & in
prescribed manner
The insurance shall be taken from LIC or any other
prescribed insurance company
However , employer of an establishment belonging to
or under the control of CG or SG are exempted from the
operations of sec.4A.
11. Every employee, who has completed 1 yr of service , is
compulsorily required to make a nomination (Form F)
The nomination must be made within 30 days
12. The nomination must be made in favor of one or
more members of the family(nomination shall be void
if it is made in favor of a person who is not a member
of his family)
If at the time of making nomination, the employee
does not have family, the nomination may be made in
favor of any person
The employee may distribute the amount of gratuity
amongst more than one nominee
13. Application can be made by :-
• An employee who is eligible for payment of gratuity
• Any person authorized in writing by such employee
• Nominee of the employee(if the deceased employee
had made a nomination)
• Legal heir of the employee(if the deceased employee
had not made any nomination)
14. If the employer fails to pay the gratuity within the prescribed
time (i.e., within 30 days of termination of employment) , the
controlling authority is empowered to issue a certificate to the
collector to recover the amount of Gratuity
The employer shall also be liable to pay Compound interest
at such rate as may be notified by CG from time to time
The interest shall be paid from the date of expiry of the prescribed
period& ending with actual date of payment of Gratuity
The interest payable shall not exceed the amount of gratuity
payable
15. OFFENCE PENALTY
False statement to 6 months imprisonment or
avoid payment Rs 10,000 or both
3 months-1 yr
Default in complying
imprisonment or Rs 20,000
with Act
or both
Non-payment of 6 months-2 yrs
Gratuity imprisonment
16. Monthly Rated Employee
Piece rated employee
Employee of a Seasonal Establishment
17. • Last drawn wages x 15/26 x Completed years of Service
(incl. a part of year in excess of 6 months)
NOTE:
• Wages = Last drawn
• Month = Period of 26 Days
• 15 days wages = Last drawn wages x 15/26
18. • Last drawn wages x 15/26 x Completed years of
Service(incl. a part of year in excess of 6 months)
NOTE:
• Last drawn wages = Total wages received during 3 months
immediately preceding termination/Days actually worked
• Last drawn wages shall not include overtime wages
19. • Such an employee shall be paid gratuity at the
rate of 7 days wages for each season