PAYMENT OF GRATUITY ACT,1972

The Payment of Gratuity Act is a genre of various statutes like the Minimum Wages Act,
Employment and Social Policy, etc. which is an extension of labour laws and it lays down the
minimum benefits to be provided to the employees. It is a social security enactment providing for
the welfare benefits of the employees working in industries, companies and organisations.

Scope and Objective

The Payment of Gratuity Act,1972 was enacted with sole objective of providing gratuity i.e., a
monetary award given for services rendered to the employees working in the factories, oilfields,
mines, plantations, railway companies, shops or other establishments upon their superannuation
(e.g.,old age retirement amount,etc.), retirement, resignation, death or disablement. 

According to this Act, the continuous service means an uninterrupted service during the
employment period. This includes the leave due to sickness, accident, lay off, strike, etc. If the
interruption is of six months or one year, then the employee is not entitled to gratuity benefits.
He/She should have worked for at least 190 days in mine or coalfield like establishment (where
duration of work is only for 6 months) and 240 days in other areas.

Procedure of payment

An employee is entitled for the payment of gratuity if he/she has rendered five years of
continuous service on his superannuation, retirement, resignation, death, disablement. However,
the five years of continuous service is not mandatory in the case where the termination is due to
death or disablement. A retired person is also entitled to gratuity amount along with his
pension. In the case of death or disablement by accident or disease, the employer is under
obligation to pay the gratuity amount to the employee’s nominee or the legal heir, as the case
may be, irrespective of the number of years continuous services has been rendered. The amount
of gratuity shall not exceed Rs. 10 Lakhs.

The person entitled to receive the gratuity amount shall send an application in writing to the
employer. The employer shall calculate the gratuity amount and provide notice in writing to the
concerned employee and the controlling authority. The payment should be made within 30 days
from the date payable to the employee. Failure of payment within the prescribed limit will result
in payment of simple interests. However, if the delayed payment is because of the employee then
the employer is not entitled to pay the simple interests.

An employee holds a right to receive a gratuity for services rendered, however, this right of an
employee can be curtailed in two conditions:

1. If the termination is due to willful omission or negligence causing loss, or damage, or

destruction of property belonging to the employer.
2. If the termination is due to riotous or disorderly conduct or constitutes of an offence
which is immoral in nature.

TRADE UNION ACT, 1926

A trade union is an organized group of workers who strive to help the workers in the issues
relating to the fairness of pay, good working environment, hours of work and other benefits that
they should be entitled to instead of their labour. They act as a link between the management and
workers.  In India Trade Unions Act of 1926 is a principal Act for controlling and managing the
working of trade unions.

Registration of Trade Unions

The Trade Union Act of 1926 was passed in the year 1926 but it came into effect in the year
1927. The Act contains the provisions related to registration, regulation, benefits, and protection
for trade unions. Section 3 to Section 14 of Chapter 2 of the Act deals with the registration of
trade unions in the territory of India.

Section 3: Appointment of Registrars

Section 3 of the Act empowers the appropriate government to appoint a person as the registrar of
a trade union. The appropriate government can also appoint as many additional and deputy
registrars in a trade union as it deems fit for carrying on the purposes of the Act.

Section 4: Mode of Registration

Section 4 of the Act provides for the mode of registration of the trade union. According to the
Section, any seven or more than seven members of a trade union may by application apply for
the registration of the trade union subject to the following two conditions:

 At Least 7 members should be employed in the establishment on the date of the making
of the application.
 At Least 10% or a hundred members whichever is less, are employed in the establishment
should be a part of it on the date of making the application.
According to Section 9 of the Act, the registrar shall issue a registration certificate to any trade
union which has been registered under the provision of Section 8 of the Act and such certificate
shall act as conclusive proof of registration of the trade union.
 EMPLOYEES COMPENSATION ACT, 1923

Introduction

Every employee needs a secured job and wants to get compensation for the expenses he has
incurred. This is a requirement that needs to be fulfilled by the company whether it is small scale
or large scale. After all, a company’s success depends on its employees. Therefore, the protection
of employees’ and their safety is a top priority of a company. This article is all about how much
compensation is given, under what conditions, who is entitled to claim compensation and a lot
more.

Main features of the Act 

The “Employees Compensation Act, 1923” is an Act to provide payment in the form of
compensation by the employers to the employees for any injuries they have suffered during an
accident. Earlier this Act was known as the Workmen Compensation Act, 1923. When the
employer is not liable to pay compensation-

1. If the injury does not end in the entire or partial disablement of the
employee for a period exceeding three days.
2. If the injury, not leading in death or permanent total disablement, is
caused by an accident which is directly attributable to: 

 The employee having at the time of the accident is under the influence
of drink or drugs; 
 The willful disobedience of the employee to an order if the rule is
expressly given or expressly framed, for the purpose of securing the
safety of employees; or
 The willful removal or disregard by the employee of any safety guard
or other device which has been provided for the purpose of securing
the safety of employees.
To be eligible for the Employees’ Compensation Act’s benefits there are some
requirements which need to be fulfilled:

1. You must be an employee of the Company or Organisation.

2. You must have been injured at the workplace or the job was as such
that you have been injured.
The adjudication is done by the commissioner in calculation of the amount of
compensation. The quantum of compensation is calculated from the date of the
accident.