Gratuity Act,


“Employee” means 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 factory, mine,oilfield, plantation, port, railway company, shop or other establishment to which this Act applies, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.
When Gratuity Payable?
Ø
renders
continous service for not less than 5
years and
Ø
attains
superannuaiton or
Ø
retires
or
Ø
dies
or
Ø
incurs
disablement due to accident or disease
Deemed
Continuous Service
Employment
|
For 1 year(working for
atleast)
|
For 6 months ( working
for atleast)
|
Mine
|
190 Days
|
95 Days
|
Establishments working
for less than 6 days in a week
|
190 Days
|
95 Days
|
Seasonable
Establishment
|
75% of operational Days
|
75% of operational Days
|
Other Establishments
|
240 Days
|
120 Days
|
Amount of Gratuity
Minimum –
Seasonal Establishment -
@7 Days wages for each season
Others – Last Drawn
Monthly Salary x 15/26 x No. of years of
service
Maximum – Rs. 10 Lac
Deemed Continuos service
To Whom Gratuity Payable
Retirement,Resignation,Superannuaiton,Disablement
|
To employee
|
In case of Death
- If he has made
nomination
- otherwise
|
- To Nominee
-To
Legal Heir of employee
|
Note: Note:
if such person is minor, the amount of gratuity shall be invested by the
Controlling authority in the approved bank or FI, till the date minor attains
majority.
Nomination
Compulsory Nature
|
Every employee who has completed 1 year of service shall make a
nomination.
|
Mode of making nominaton
|
Employee shall deliver it personally or through registered post to the
employer.
|
In Favour of
|
-
Family Member only
-
if has no family, then can do
it in favour of any other person.
|
Time period
-
Normally
-
if acquires family later
|
- Within 30 days
-
A fresh nomination in favour of family member(s) within 90 days.
|
Modification
|
-
Employee can modify his nominaton any time by giving a written notice
to the employer
-
if Nominee dies before the
employee, then he shall make a fresh nomination.
|
Responsibility of employer
|
-
Shall record the nomination & acknowledge it receipt to the
employee.
-
If employee refuses to accept the nomination, the employee can apply
to the controlling authority to issue the necessary directions.
|
Forfeiture of Gratuity
Forfeiture
|
Termination of Service due to
|
Partial(To the extent of such damage or destruction)
|
any act - willful omission
- negligence causing
-
any damage
-
loss or
-
destruction
to the property of employer
|
Total
|
-
Riotous or
disorderly conduct
-
any other act or violence
-
any act which constitutes an offence
involving moral turpitude
-
provided such
offence is committed in course of
employment.
|
Note 1 : Gratuity cannot be forfeited on account of :
- non vacation of land by employee
- non vacation of staff quarter by employee
Note 2 : Absence from duty without leave by employee can be treated as
breach of continuity of service by the employer for the purposes of this Act.
Protection of
Gratuity/Attachment of Gratuity – Gratuity payable to employee shall not be liable
to attachment in execution of any decree or order of the Civil or Revenue or
Criminal Court.
It is immaterial as to whether the
gratuity is payable is payable to the employee-
a. under the Act; or b. In an establishment exempted u/s 5.
Recovery of
Gratuity?
If
the gratuity payable under this Act is not paid by employer within 30 days of
due date of gratuity the following apply:
Application
|
The aggrieved
person is required to make an application in Form ‘T’ in duplicate to the
controlling authority.
|
Opportunity of
being heard
|
The controlling
authority before issuing a certificate must give the employer a reasonable
opportunity of showing cause against the issue of such certificate.
|
Recovery
certificate
|
The controlling
authority shall issue a certificate to the controller for that amount
together with the compound interest thereon at the prescribed rate from the
date of expiry of the prescribed time till the actual date of payment.
|
Maximum Interest
|
The amount of
interest payable must not exceed the
amount of gratuity payable under this Act.
|
Recovery by
Collector
|
The controller
shall recover the same as arrerars of land revenue and pay the same to the
person entitled thereto.
|
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