Académique Documents
Professionnel Documents
Culture Documents
Background
Death
Permanent disablement
Historical Background
Govt. of
Keralas
legislation
for
payment of
gratuity
3rd June
1971,
introduced
a ordinance
where
payment of
gratuity
was
enacted
Ordinance
replaced by
West
Bengals
employees
payment of
compulsory
gratuity act
Central
legislation
on gratuity
discussed
and bill
introduced
in
parliament
Objective of the
Act
The Payment of Gratuity Act, 1972 envisagesto provide a
Concept of Gratuity
Considered as an award for
good, efficient and faithful
service rendered by the
employee for a considerable
period
Dynamic
Concept
After the Gratuity Act, 1972,
gratuity has become a statutory
right of workers- so the concept
of meritorious service no longer
holds
Applicability
Applicable to those
organizations where employee
strength is more than 10
Shop or establishment in which
act has become applicable shall
continue to be governed by act
even though employee
strengths falls below 10
Appropriate Government
Appropriate
Govt.
Establishmen
t
Belonging to
Central Govt.
Having
branches in
more than
one state
Factory
Major mine,
port, oilfield
or railway
Other case
In any other
case state
government
Definitions
Employees
Regular employees of the Institute + Director
Exclude persons appointed on a contract basis
unless the terms of the contract provide for payment
of any gratuity
Member
Employee who has been admitted to the
membership of the Scheme
Employer
Person appointed by appropriate govt. or local
authority to supervise and control establishment or
where no person appointed, head of Ministry of Dept.
concerned/chief executive office of local authority
Definitions (Contd.)
Qualifying Service
Superannuation
Retirement
Wages
Dungerbhai
Meghabhai v.
Shri Arbuda
Mills Ltd.,
(1996) 1 CUR
LR 149: 1996
lab IC 262
Cases
Definitions
Gurudeo
Ayurved
Mahavidyalay
a v. Madhav,
(1994)
(Bombay)
Cases
Definitions
A temple is an establishment
Gratuity v.
Pension
Gratuity v.
Provident Fund
Gratuity is a retiral
benefit but
Provident Fund is
intended to induce
thrift so that
employees may lay
from his present
earning a portion for
his old age
Gratuity v. Retrenchment
Compensation
Compensation for premature termination of
employment- Section 25-F(b) of the Industrial
Disputes Act, 1947
Continuous Service
Payment Of Gratuity
On his superannuation
On his retirement or resignation
On his death or disablement due to accident or
disease
Computation of Gratuity
Compulsory
Insurance
Every employer must, for his liability to pay towards
the gratuity , obtain an insurance from the LIC
Nomination
Nominee of the employee (if the deceased employee had made a nomination)
Legal heir of the employee (if the deceased employee had not made any
nomination
If not paid within 30 days, simple interest from the payable date to paid date.
In case of any dispute wrt gratuity, the amount must be deposited with controlling
authority
Controlling Authority shall make due inquiries and if claim is found admissible,
direct payment is made to person entitled
Appeal
Limitation 60 days from the date of receipt of order which is further extended
to 60 days more on sufficient cause.
Inspectors
Purpose of Appointment : To ascertain whether or not the provisions
of the Act have been complied with by an
employer.
Duties of Owners etc. : To produce accounts, books, registers or
other documents required by the inspector;
To give information
Inspector
required
by
the
Inspectors
The inspectors shall be appointed by AG by Notification in the Official
Gazette
extend. Where two or more inspectors are appointed for the same
area, AG may distribute or allocate work to be performed by them
(i.e., AG may define the limits within which the inspector shall exercise
jurisdiction).
Power of Inspectors
Recovery of gratuity
Penalties
(1) Whoever, for the purpose of avoiding any payment to be made by
himself under this Act or of enabling any other person to avoid such
payment, knowingly makes or causes to be made any false
statement or false representation shall be punishable
with imprisonment for a term which may extend to six months
or with fine which may extend to ten thousand rupees
or with both.
(2) An employer who contravenes, or makes default in complying with,
any of the provisions of this Act or any rule or order made there
under shall be punishable
with imprisonment for a term which shall not be less than three
months but which may extend to one year,
or with fine which shall not be less than ten thousand rupees but
which may extend to twenty thousand rupees
or with both
of his intention to do so
Cognizance Of Offences
Protection of gratuity
No gratuity shall be liable to attachment in
execution of any decree or order of any civil,
revenue or criminal court
Interest
on this
Delayed
of
While
interpreting
the Payment
aforesaid
provisions
Answering
question
the SC referred
to
Gratuity
the
court
observed:
the
provisions
in section
7(3-A)
of the PGA
Kerala
State
Cashew
Development
[I]t is absolutely
clear that
if any amount
of gratuity ,
which
reads as
under:
which
is payable
under
section
7 is
not paid
by the
Corporation
Limited
v. N.
Asokan
(2009)
employer within the16 period
specified in subSCC
758
If the amount of
gratuity payable under subCase
section(3), the employer
is liable to pay interest from
section (3) is not paid by the employer within
the date on which the
gratuity becomes payable to
Facts:
the period specified in sub-section (3), the
the date on which it is paid, simple interest at such
employer shall pay, from the date on which the
rate, not exceeding the rate notified by the Central
gratuity becomes payable to the date on which
Government from time to time for repayment of longit is paid, simple interest at such rate, not
term deposits, but on those delayed payments, where
exceeding the rate notified by the Central
the employer has obtained permission in writing from
Government from time to time for repayment of
the controlling authority for delayed payment, in that
long-term deposits, as that Government may,
case, no such interest shall be payable to the
by notification specify:
employee.
Applying
the above
principle
in this case
held
Provided
that no
such interest
shallthe
becourt
payable
that ifasthe
no delay
such permission
was obtained
the employer
in the payment
is due by
to the
fault of
in writing
from the controlling
section
7(3-A) and
the employee
and the authority,
employer
has obtained
its term
would be in
squarely
applicable
the controlling
facts of this
permission
writing
from in
the
case.
The courtfor
accordingly
upheld payment
the decision
the
authority
the delayed
on ofthis
court
below.
ground.
Thank You