Applicability- Every factory, mine, oilfield, plantation, port and railway company. Every shop or establishment-under any law-10 or more employed in 12 months. Any other establishment by notification. Fall in No. of employees below 10-docs not affect applicability, once applied. [S. 1(3A)]
Employee Includes all employees (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 factory, mine, oil field, plantation, port, railway company, shop or other establishment to which this Act applies. Does not include apprentice and State or Central Govt. employee governed by other Acts. Sec. 2(c) Does not include apprentice and State or Central Govt. employee governed by other Acts. Wage-emoluments earned while in employment. Does not include bonus, commission, HRA, and overtime wage. Sec. 2(s) Family - includes a lawfully adopted child. Sec. 2(h) Nomination in favour of any members of family to be made on completion of 1 year of service (Sec. 6 Rule 6 Form F)
Uninterrupted service including service interrupted due to sickness, accident, absence without leave, Lay-off, lockout, strike etc. If worked in a period of 1 year/six months. for 190 days/95 days if in a mine or establishment working for less than 6 days in a week. - for 240 days/120 days in any other case. Seasonal employee - continuous service is 75% of the days on which establishment operated.
Entitlement Payable on termination due to retirement, superannuation, death or disablement. Eligibility - 5 years continuous service is the criteria for eligibility- not essential for death and disablement. - eg: if a peson has worked for 5 years and 6 months, it is deemed 6 years service and less than 6 months not to be considered. Calculation Monthly rated employee- monthly rate of wages x 15 x Number of Years 26 Piece rated employee - Average of total wage in 3 months x 15 x No. of Years Seasonal employee- at the rate of 7 days wages. In each case maximum amount payable cannot exceed 10 lakhs
If service is terminated for any act, wilful omission, or negligence causing damage or loss to employer-to the extent of damage. Wholly or partially forfeited-if termination is due to riotous or disorderly conduct, or for offence involving moral turpitude.
amount to be deposited with Controlling Authority and application for direction to be filed in within 90 days of cause of action. (Rule 10, Form N)
Maintainable from the order of Controlling Authority u/s. 4. Limitation period is 60 days from the receipt of order. On sufficient cause extended to 60 days more. (Rule 18)
If gratuity is not paid by the employer Controlling Authority issues certificate to collector who recovers the amount as arrears of land revenue together with compound interest (Rule 19, Form J)
in execution of any decree or order of Civil/Criminal Court.
To Determine the amount of gratuity as soon as it falls due after giving notice to concerned person and Controlling Authority (Sec. 7(2))
Simple interest is paya payable from the date gratuity fell due upto date of actual payment in case of delay (Sec. 7(3A)
9 1) False statements to avoid payment. 6 months imprisonment or ₹ 10,000 or both.
2) Contravention/default in complying with Act/Rules. 3 months - 1 year imprisonment or 20,000/- or both.
3) Non-payment of gratuity. 6 months - 2 year imprisonment.
