Page 241 - DCOM207_LABOUR_LAWS

Labour Laws

Notes for the exception enumerated in Sub-Section (6) of Section 4 of the Act. It is elsewhere said
that “Gratuity” as the term itself suggests is a gratuitous payment extended to an employee
on retirement or discharge, in addition to other retiral benefits payable to the employee.
The Court held that indisputably the Petitioner-Corporation illegally deducted the amount
from out of the gratuity payable to the 3rd Respondent, which did not have the permission
under the Act much less the Regulation, since no provision under the Regulation is shown
to invest such a power in the Petitioner.
Source: http://www.chadha-co.com/pdfs/C&Co-Labour-Law-Update-April-May-2012.pdf

Self Assessment

State whether the following statements are true or false:

1. Gratuity as an additional retirement benefit has been secured by labour in numerous
instances, either by agreement or by awards.
2. The Government of India enacted legislation on gratuity.
3. If the amount of gratuity payable under this Act is paid by the employer, within the
prescribed time, to the person entitled thereto.

14.2 Definitions

In this Act, unless the context otherwise requires, -
1. Completed Year of Service: The term ‘completed year of service’ means continuous service
for one year. An employee shall be said to be in continuous service for a period if he has,
for that period, been in uninterrupted service, including service which may be interrupted
on account of sickness, accident, leave, absence from duty without leave (not being absence
in respect of which an order imposing a punishment or penalty or treating the absence as
break in service has been passed in accordance with the standing orders, rules or regulation
governing the employees of the establishment), lay-off, strike or a lockout or cessation of
work not due to any fault of the employees, whether such uninterrupted or interrupted
service was rendered before or after the commencement of this Act.
(i) Where an employee (not being an employee employed in a seasonal establishment)
is not in continuous service within the meaning of the above clause for any period
of one year or six months, he shall be deemed to be in continuous service under the
employer if he has actually worked for 190 days during the preceding 12 months in
an establishment which works less than 6 days a week and 240 days in any other
case;
(ii) Further, for determining the continuous period of six months, an employee should
have completed 95 days in an establishment which works for not less than 6 days in
a week and 120 days in any other case.
2. Employee: An employee is a person (other than apprentice) employed on wages (no wage
ceiling) in any establishment, factory, mine, oilfield, plantation, railway company or shop,
to do any – skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical
work, where the terms of such employment are express or implied, and includes any such
person, who is employed in a managerial or administrative capacity, but does not include
any person who holds a civil post under the Central Government or a State Government,
or who is subject to the Air Force Act, 1950, the Army Act, 1950, or the Navy Act, 1957.

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