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Gopika Juneja, Lovely Professional University Unit 14: The Payment of Gratuity Act, 1972

Unit 14: The Payment of Gratuity Act, 1972 Notes

CONTENTS

Objectives
Introduction
14.1 Genesis of the Act
14.1.1 Main Provision
14.1.2 Objective of this Act
14.1.3 Applicability and Coverage of this Act

14.2 Definitions
14.3 Rights, Obligations and Benefit of the Employer
14.4 Benefit of this Act
14.5 Payment of Gratuity

14.5.1 Forfeiture
14.5.2 Exemption
14.5.3 Nomination
14.5.4 Settlement of Claims
14.5.5 Penalties

14.6 Summary
14.7 Keywords
14.8 Review Questions
14.9 Further Readings

Objectives

After studying this unit, you will be able to:
l z Explain the genesis of the Act
l z Get an overview of the definitions under this Act

l z Describe the rights and obligations of the employer
l z Discuss benefit of this Act
l z Get an overview of payment of gratuity

Introduction

In the previous unit, we dealt with the ESIC Act. The umbrella legislation relating to gratuity is the
Payment of Gratuity Act, 1972. The Act was enacted to provide for a scheme for the payment of
gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies,
shops or other establishments employing ten or more persons and for matters connected
therewith or incidental thereto. The appropriate Government may, by notification, and subject
to such conditions as may be specified in the notification, exempt any establishment to which

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