:: Gratuity ::
The Payment of Gratuity Act, 1972
Applicability :
- Every factory, mine, oilfield, plantation, port and railway company.
- Every shop or establishment – under any law – 10 or moreemployed in 12 months.
- Any other establishment by notification.
Note: Fall in no. of employees below 10 – does not affect applicability, once applied.
Eligibility :
5 years continuous service is the criteria for eligibility - not essential for death and disablement – eg. If a person has worked for 5 years and 6 months, it is deemed 6 years service and less than 6 months not to be considered.
Entitlement :
Payable on termination due to retirement, superannuation, death or disablement.
Labour Department is empowered to visit establishments for inspection and verification of records so as to ascertain whether the establishments are following the provisions of the Act both in letter and spirit.
Statutory Forms :
- Notice of Opening – Form 'A'
- Notice of Change – Form 'B'
- Notice of Closure – Form 'C'
- Notice for excluding Husband from Family – Form 'D'
- Notice of withdrawal of notice for excluding husband from family - Form 'E'
- Nomination – Form 'F'
- Fresh Nomination – Form 'G'
- Modification of Nomination 'H'
- Application for Gratuity by an Employee – Form 'I'
- Application for Gratuity by a Nominee 'J'
- Application for gratuity by a legal heir – Form 'K'
- Notice for Payment of Gratuity – Form 'L' Statutoty Form (Contd)
- Notice rejecting claim for payment of gratuity – Form 'M'
- Application for Direction – Form 'N'
- Notice for appearance before the Controlling Authority – Form 'O'
- Summons – Form 'P'
- Particulars of application under section 7 – Form 'Q'
- Notice for Payment of Gratuity – Form 'R'
- Notice for Payment of Gratuity as determined by Appellate Authority – Form 'S'
- Application for recovery of gratuity – Form 'T'
- Abstract of the Act and Rules – Form 'U'
Penalty :
- False statements to avoid payment: 6 months imprisonment or Rs. 10000 or both.
- Contravention / default in complying with act / Rules - 3 months – 1year imprisonment or Rs 20000.00 or both.
- Non-payment of gratuity: 6 months to 2 year imprisonment.