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Unit 13: Industrial Law

Authorities Appointed under the Act Notes

1. Inspector: (under Section-19)
(a) Labour Commissioner
(b) Additional Labour Commissioner (IR and E)
(c) Regional Joint Labour Commissioners

(d) Joint Labour Commissioner (P)
(e) Chief Inspector of Plantations
(f) Deputy Labour Commissioner (HQ)
(g) Dist Labour Officer (HQ)

(h) Additional Labour Commissioner, Kozhikode
(i) Dist Labour Officers (E)
(j) Inspector of plantations
(k) Asst. Labour Officers – Grade II

2. Claim Authorities (under Section –20)
(a) Labour Courts
(b) Deputy Labour Commissioners
3. Sanctioning Authority (under Sec. 22)

(a) Labour Courts
(b) The chief inspector of plantations Kottayam.
(c) Dist. Labour officers (E)

13.8 Payment of Gratuity Act, 1972

Gratuity as an additional retirement benefit has been secured by labour in numerous instances,
either by agreement or by awards. It was conceded as a provision for old age and a reward for
good, efficient and faithful service for a considerable period. In the early stages, gratuity was
treated as a payment gratuitously made by an employer at his will and pleasure. In the course of
time, gratuity came to be paid as a result of bilateral agreements or industrial adjudication. The
Supreme Court had laid down certain broad principles to serve as guidelines for the framing of
the gratuity scheme. They were:

1. The general financial stability of the concern;
2. Its profit-earning capacity;
3. Profits earned in the past;

4. Reserves and the possibility of replenishing the reserves; and
5. Return on capital, regard being had to the risk involved.
The first central legislation to regulate the payment of gratuity was the Working Journalists
(Conditions of Service) and Miscellaneous Provisions Act, 1955. The Government of Kerala
enacted legislation in 1971, for payment of gratuity to workers employed in factories, plantations,
shops and establishments. In 1971, the West Bengal Government promulgated an ordinance,

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