Page 121 - DMGT306_MERCANTILE_LAWS_II

Mercantile Laws – II Pooja, Lovely Professional University

Notes Unit 7: The Payment of Gratuity Act, 1972

CONTENTS
Objectives

Introduction
7.1 Genesis of the Act

7.1.1 Main Provision
7.1.2 Objective of this Act
7.1.3 Applicability and Coverage of this Act

7.2 Definitions
7.3 Rights Obligations and Benefit of the Employer
7.4 Considerations of the Act

7.5 Payment of Gratuity
7.5.1 Forfeiture
7.5.2 Exemption

7.5.3 Nomination
7.5.4 Settlement of Claims

7.5.5 Penalties
7.6 Determination and Recovery of Gratuity
7.6.1 When is Gratuity Payable?

7.6.2 To Whom is Gratuity Payable?
7.6.3 Recovery

7.7 Summary
7.8 Keywords
7.9 Review Questions

7.10 Further Readings

Objectives

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

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

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