Summary Notes of Labour Law of CS Executive/CMA Inter

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.