Payment of Gratuity Act

Payment of Grahvity Act 16th sept 1972 Applicability: (a) factory, Plantation, mines, Oilfields, ports and railway co. (Plantation Port nor applicable in J&K) (b) Establishment governed by Shops & establishment has 10 or mare employees at ANY time dương thi Preceding 12 months. (() Establishment or by shops employees class of establishment (not covere e establishment Act) has 10 or more CG nokfies in the official Gazelle. Notified establishment: circus educathorel Institution Chamber of Commerce Motor Transport Local bodies Interd water marsport establishment Non applicability: (Section 5) If AG in of the opinion that ee and eee or any den of is receipt of gratuity or pensionany. benefit not less favourable than benefits under the Act it wow exempt the establishment from application of Act by notifying in the official Gazette. POGA Once the Act applies it will always apply. Employer Pay gratuur → eligible employee Employee: (section 2(e) any person (Other than an apprentice) who is employed for wapes, whether the teras of such employment is expren / implied ary ked of work manual or omerwise n connection with factory Does not include employees of ca or sa Post covered far gravity. by any other Act or rules providing Teacher in included in the definition. co directer nor having ultimare control over affais of Management is employee Eligible employee termination is employment (Retirement, superanvation, resignation, death, disablement caused as a seoult of accident or decease) → eee has rendered continuous service for not len than 5 year In case of & death or resignation the Condition of 5 yean is not essential. Completed year of service: (Section 2(b) Continuous service for one year. Continuous Services (section 2A) for a Denvice period if for that period been a uninterrupled service with permissible inerruption (accident, sickness, leave, absence wuhout break in service), layoff. Strike or Lockout, Stop of work nor due to favir of employ Deemed continous Service: employee other than Seasoned establishment: For I year: Wortes below the ground in mire of Works 6 days in len than a week 190 days Other case. 240 days If present for these days then continuous fer one yea Service For 6 months Worts below the ground in wie or len than 6 days a week 95 days Other cases 120 days If present for for 6 wths. these days then continuous since Seasonal establishment: worked 20 for not leas than 75% 아f the no. of days on which the establishment was in operation Followüp day, shale be counted for working days! (a) lay oft (b) leave with wages (C) temporary disablement caused by accident arising out of and in the course of employment (d) mavenity leave nor exceedup 12 weeks. An employee who is re-employed without break in service eligible fes gratuity. A retrenched employee is entitled to a gratuity. Partnerships converted to wo compary will receive gratuity based on service under bath establishments. Quantum of gravity: (Section 4(2) Establishment other than seasonal. 1x last drawn wapes x completed years of service 15 26 or part thereof i excen of 6 mths. In the case of piece-rated employees, the wapes will be the average of wapes received for 3 with immediately preceding the termination of employment. Seasonal establishment work throughout the year work only during season. 15 26 * Salary completed year of service or. part hereof i excon ob 6 MONHY. Ix Salovy x No. of 24 Seasons. Gravity for disabled employee: Section 4(4) (1) period preceding disable ment: 15 26 last drawn Salary at the timе 아 disable ment X completed year of Service before,, disablement (ii) period After disablemen 15 1x last drawn Salary 26 at the flue of termination x completed year of service after disablement. Wager: Section 2(3) emolument earned while on duty or leave å accordance with the seurs of employment which are paid or payable to hin and Includes DA but does not include any bonus, commission, house sent allowance, overtime allowanes or any Other allowance forfeiture of gravity: Section 4(6) case 1. Extent of loss termination f Service ↓ →ach → wuful omission → negligence Causip Loss or damage to the property belonging. to ear. Forfeit to the extent of loss. (Pramatik Wallance trd. V. stave of MP). case IL wholly Termination f Service →siotous disorderly conduct → act of violence + offence of moral turpitude in the course of employmen can be wholy forfeited (Bharat Gold Mines itd v. Regional Labour coumissioner) T Case Il Casely Charger No forfeitore due to the exle Refwel to Surrender Charge (wazir chand v India) belongul to Land employer (Travancore Plywood Industries Itd. vs. Regional Jout Labour commissioner) Nomination: (Section 6) One year of within 30 days of completion of rervice nominere More than 020 person can be nominated only a favour of family member. of no family in favour of any person. when family acquired مدمال ده 90 days charpe nochahier i javom of family nomination is vold. Compulsory Insurance: Section 4(4) Employer has liabilly to create a grahvity fund with any other prescribed Insurance company. →AG may exempt the following from gratuity fund with 4C * employer who has established an approved gravity fund * employers with 500 established or mone employees with an approved gratuity fund. All employers with insurance or an approved gravity fund should register with the conrowing Authority. Application for payment of Gratuity: (Section 7 and Rule 7) Employee CY ary person on his behalf of authorised i writing within 30 days of gravity beup payable apply to the employer. → If dase of superannuation or employee may apply 30 days before annuation or retirement retremen known the date of Super In case of death nominee shall apply. 06 Nomination made legal retire will apply. Employer's duty: → Notice given or not the employer should calculate the gratuity amount and give notice in writing to the employee and controwing authority. Employer arrange dave becomes due. to Pay within 30 days from Mode of Payment of gratuity: Cash, demand drafth on bank cheque. If amount less than 1000 y person claiming desires by Postal money order. If nominee minor deposit money is term deposit with SBI or its subsidiaries or Nationalised bank. Disputes: → employer refuses to accept nomination → amount of gravily payable. the employer, nominee or legal heir within 90 days apply to conmoving authority (ca) ↓ CA will issue notice to both parties to appeal. If ear fails to appear may pass ex-parte order Aggrieved by CA's order appeal I within 60 days. Appropriate Government Recovery: of amount payable by employer is not paid CA Will issue a certificere to collector to recover & along with compound interest. Protection of Gratuity: Gratuity cannot execution of any be attached by any court a decree GY ander.