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The Payment of Gratuity Act 1972

The Payment of Gratuity Act 1972

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Published by: a.ravi on Mar 28, 2009
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10/13/2012

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THE PAYMENT OF GRATUITY ACT, 1972CONTENTS
Introduction
Sections1.Short title, extent, application and commencement2.Definitions2A. Continuous service3.Controlling authority4.Payment of gratuity4A. Compulsory insurance5.Power to exempt6.Nomination7.Determination of the amount of gratuity7A. Inspectors7B. Powers of Inspectors8.Recovery of gratuity9.Penalties10.Exemption of employer from liability in certain cases11.Congnizance of offences12.Protection of action taken in good faith13.Protection of gratuity
14.
Act to override other enactments,
etc.
15.Power to make rules
THE PAYMENT OF GRATUITY (CENTRAL)RULES, 1972
Rule1.Short title and commencement2.Definitions3.Notice of opening, change or closure of the establishment4.Display of notice5.Form of notice under proviso to section (2)(h)(ii)6.Nominations7.Application for gratuity8.Notice for payment of gratuity9.Mode of payment of gratuity10.Application to controlling authority for direction11.Procedure for dealing with application for direction12.Place and time of hearing13.Administration of oath14.Summoning and attendance of witnesses15.Service of summons or notice16.Maintenance of records of cases by the controlling authority17.Direction for payment of gratuity18.Appeal19.Application for recovery of gratuity20.Display of abstract of the Act and Rules
 
FORMS 
Form 'A'- Notice of openingForm 'B'- Notice of changeForm 'C'- Notice of closureForm 'D'- Notice for excluding husband from familyForm 'E'- notice of withdrawal of notice for excluding 27 husband from familyForm 'F'- NominationForm 'G'- Fresh NominationForm 'H'- Modification of nominationForm 'I'- Application of gratuity by an employeeForm 'J'- Application for gratuity by a nomineeForm 'K'- Application for gratuity by a legal heir Form 'L '- Notice for payment of gratuityForm 'M'- Notice rejecting claim for payment of gratuityForm 'N'- Application for directionForm '0'- Notice for appearance before the controlling authorityForm 'P'- SummonsForm 'Q'- Particulars of application under section 7Form 'R '- Notice for payment of gratuityForm 'S'- Notice for payment of gratuity as determined by Appellate AuthorityForm 'T'- Application for recovery of gratuityForm 'U'- Abstract of the Act and Rules
 
THE PAYMENT OF GRATUITY ACT, 1972INTRODUCTION
The Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955(45 of 1955) under section 5 provided for the payment of gratuity to the journalist. But there wasno other Central Act which provided for the payment of gratuity to industrial workers. TheGovernment of Kerala enacted legislation for payment of gratuity to workers employed infactories, plantations, shops and establishments. The Governor of West Bengal promulgated anOrdinance on 3
rd
June, 1971 wherein a scheme for payment of gratuity was enacted. TheOrdinance was later replaced by the West Bengal Employees' Payment of Compulsory GratuityAct, 1971 enacted by the President on 28
th
August, 1971. Gratuity was also being paid by someemployers to their workers under Awards and Agreements. Since the enactment of the Keralaand West Bengal Acts, some other State Governments also wanted to enact similar measures.Taking into account the intention of the State Governments it was felt necessary to have a Centrallaw on the subject so as to ensure a uniform pattern of payment of gratuity to the employeesthroughout the country. The proposal for Central legislation on gratuity was discussed in theLabour Ministers' Conference held at New Delhi on 24
th
and 25
th
August, 1971 and also in theIndian Labour Conference at its session held on 22
nd
and 23
rd
October, 1971. There was generalagreement at the Labour Ministers' Conference and the Indian Labour Conference that Centrallegislation on payment of gratuity might be undertaken at the earliest. Accordingly the Payment of Gratuity Bill was introduced in the Parliament.
STATEMENT OF OBJECTS AND REASONS
There is at present no Central Act to regulate the payment of gratuity to industrial workers,except the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955.The Government of Kerala enacted legislation last year for payment of gratuity to workersemployed in factories, plantations, shops and establishments. The West Bengal Governor Promulgated an Ordinance on the 3
rd
June, 1971 prescribing a similar scheme of gratuity. ThisOrdinance has since been replaced by the West Bengal Employees' Payment of CompulsoryGratuity Act, 1971, enacted by the President on 28
th
August, 1971. Gratuity is also being paid bysome employers to their workers under Awards and Agreements.Since the enactment of the Kerala and the West Bengal Acts, some other State Governmentshave also voiced their intention of enacting similar measures in their respective States. It hasbecome necessary, therefore, to have a Central law on the subject so as to ensure a uniformpattern of payment of gratuity to the employees throughout the country. The enactment of aCentral law would also avoid different treatment to the employees of establishments havingbranches in more than one State when, under the conditions of their service, the employees areliable to transfer from one State to another.The proposal for Central legislation on gratuity was discussed in the Labour Ministers'Conference held at New Delhi on 24
th
and 25
th
August, 1971 and also in the Indian Labour Conference at its session held on the 22
nd
and 23
rd
October, 1971. There was general agreementat the Labour Minister' Conference and the Indian Labour Conference that Central legislation onpayment of gratuity might be undertaken as early as possible. It is accordingly proposed toundertake such legislation.

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