Page 308 - DCOM404_CORPORATE_LEGAL_FRAMEWORK

Unit 13: Industrial Law

6. The employer should pay the gratuity within 30 days from the date it becomes payable or Notes
after such date along with simple interest @ 10% p.a. (or as notified by the Government
from time to time) on the amount of gratuity, unless the delay is on the part of the payee.
7. The employer should deposit the amount of gratuity payable with the controlling authority,
viz. Asst. Labour Commissioner (Central) of that area, if:

(a) The nominee or the legal heir of the employee is a minor, or
(b) There is any dispute as to the amount or admissibility of the claim of gratuity, or as
to the person entitled, etc.

Benefits and Entitlement

An employee should have completed or should be in the continuous service for a period. It
means if for that period, he has been in uninterrupted service, including service which may be
interrupted on account of sickness, accident, leave, absence from duty without leave (not being
absent in respect of which an order imposing a punishment of 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.
1. Where an employee 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;
2. 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.

Notes

1. Employee is a person employed on wages 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
hold a civil post under the Central Government or a State Government.
The family consists of:

(a) In the case of male employee, himself, his wife, his children, whether married
or unmarried, his dependent parents and the widow and children of his
predeceased son, if any;
(b) In the case of female employee, herself, her husband, her children, whether
married or unmarried, her dependent parents, and the dependent parents of
her husband, and the widow and children of her predeceased son, if any.
A female employee can exclude her husband from her family by a notice in writing
to the controlling authority. In such event, her husband and his dependent parents
Contd...

LOVELY PROFESSIONAL UNIVERSITY 303