Professional Documents
Culture Documents
GRATUITY ACT,1972
THE GROUP
NAME ROLL NO.
• HARSHWARDHAN SINGH RATHOOR 58
• BETTY MATHEW 01
• SHRADHA GARG 02
• VISHAL VATS 03
• PREMLATA TUTI 04
• DAKSH AGRAWAL 05
• NEHA MARWAH 07
• MANSI SHARMA 08
• RAVI ROSHAN DUNGDUNG 09
INTRODUCTION
• Gratuity means gifts or service often in
return of favors and services.
• In the present context, it means, a sum of
money paid to an employee at the end of
employment.
• Gratuity in case of retirement,
superannuation or death helps family to
adjust in a new situation in which income
ceases partially or completely.
• Gratuity Schemes, serves as an important
tool of social security.
HISTORICAL BACKGROUND
DEFINITIONS
CONTINOUS SERVICE
CONTROLLING AUTHORITY
PAYMENT OF GRATUITY
COMPULSORY INSURANCE
POWER TO EXEMPT
NOMINATION
FLOW OF THE ACT
DETERMINATION OF THE AMOUNT OF GRATUITY
INSPECTOR
POWERS OF INSPECTORS
RECOVERY OF GRATUITY
PENALTIES
EXEMPTION
COGNIZANCE OF OFFENCES
PROTECTION OF ACTION TAKEN IN GOOD FAITH
PROTECTION OF GRATUITY
APPROPRIATE GOVERNMENT
Factory
• Establishments include;
• Educational Institute
• Schools
• Polytechnics
• Universities
• Temple
DEFINITIONS
• Completed year of service
• Continuous Service
• Controlling Authority
• Factory
Related Cases
• A college run by a societies registered
under the societies registration act is an
establishment. Gurudeo Ayurved
Mahavidyalaya v. Madhav,(1994)
(Bombay)
• A temple is an establishment.
Administrator, Shri Jagganath Temple Puri
V. Jagannath Padhi, 1992 , Orrisa.
DEFINITIONS
• “EMPLOYEE” means any person who is
employed for wages, whether the terms of such
employment are expressed or implied in any
kind of work, manual or otherwise, in or in
connection with the work of the factory, mine,
oilfields, plantation, port, railway companies,
shop or other establishments to which this act
applies.
• Exception Persons employed in state or central
government
EMPLOYER
• "employer" means, in relation to any establishment,
factory, mine, oilfield, plantation, port, railway company
or shop –
• In case of state or central govt. a person or
authority appointed by the Government for the
supervision and control of employees, or where no
person or authority has been so appointed, the
head of the Ministry or the Department concerned,
• In case of any local authority, the person appointed
by such authority for the supervision and control of
employees or where no person has been so
appointed, the chief executive office of the local
authority,
• in any other case, the person, who, or the authority
which, has the ultimate control over the affairs of the
establishment, factory, mine, oilfield, plantation, port,
railway company or shop, and where the said affairs
are entrusted to any other person, whether called a
manager, managing director or by any other name,
such person;
DEFINITION OF FAMILY
• In Case of Male • In case of Female
Employee Employee
– Himself – Herself
– His wife – Her husband
– His children whether – Her children whether
married or unmarried
married or unmarried
– His dependant parents
– Her dependant parents
– The dependant parents
of his wife and the – The dependant parents
widow of her husband & the
– Children of his widow
predeceased son, if any – Children of her
predeceased son, if any
DEFINITIONS
• Wages
• means all emoluments which are earned by
an employee while on duty or on leave in
accordance with the terms and conditions
of his employment and which are paid or
are payable to him in cash and includes
dearness allowance but does not include
any bonus, commission, house rent
allowance, overtime wages and any other
allowance.
Definitions
• Retirement
• Superannuation
for the said period of one year, if the employee during the period of twelve calendar
months preceding the date with reference to which calculation is to be made,
has actually worked under the employer for not less than -
• 190 days, in the case of an employee employed below the ground in a mine or
in an establishment who works for less than six days in a week; and
• 240 days in any other case;
for the said period of six months, if the employee during the period of six calendar
months preceding the date with reference to which the calculation is to be made,
has actually worked under the employer for not less than -
• 95 days, in the case of an employee employed below the ground in a mine or in
an establishment which works for less than six days in a week;and
• 120 days, in any other case;
The number of days for which an employee has actually worked
under an employer shall include the days on which-
• he has been laid-off under an agreement or as permitted by standing
orders made under the Industrial Employment (Standing Orders) Act,
1946, or under the Industrial Disputes Act, 1947, or under any other
law applicable to the establishment;
• he has been on leave with full wages, earned in the previous year;
• he has been absent due to temporary disablement caused by an
accident arising out of and in the course of employment;
• in the case of a female, she has been on maternity leave; so that the
total period of such maternity leave does not exceed twelve weeks.
CALCULATING FORMULA
As Per