The Payment of Gratuity Act, 1972

Preamble

THE PAYMENT OF GRATUITY ACT, 1972 INTRODUCTION The Working journalists (Conditions of Service) and Miscellaneous Provisions Ac, 1955 (45 of 1955) under section 5 provided for the payment of gratuity to the journalist. But there was no other Central Act which provide for the payment of gratuity to industrial workers. The Government of Kerala enacted legislation for payment of gratuity to workers employed in factories, plantations, shops and establishments. The Governor of West Bengal promulgated an Ordinance on 3rd June, 1971 wherein a scheme for payment of gratuity was enacted. The Ordinance was later replaced by the West Bengal Employees' Payment of Compulsory Gratuity Act, 1971 enacted by the president on 28th August 1971. Gratuity was also being paid by some employers to their workers under Awards and Agreements. Since the enactment of the Kerela and West Bengal Acts, some other State Governments also wanted to enact similar measures. Taking into account the intention of the State Governments it was felt necessary to have a Central law on the subject so as to ensure a uniform pattern of payment of gratuity to the employees throughout the country. The proposal for Central legislation on gratuity was discussed in the Labour ministers' Conference held at New Delhi on 24th and 25th August, 1971 and also in the Indian labour conference at its session held on 22nd and 23rd October, 1971. There was general agreement at the Labour Ministers, conference and the Indian Labour Conference that Central legislation on payment of gratuity might be under taken at the earliest. Accordingly, the Payment of Gratuity Bill was introduced in the Parliament. STATEMANT OF OBJECT AND REASONS There is at present no Central Act to regulate the payment of gratuity to industrial workers, except the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955. The Government of Kerla enacted legislation last year for payment of gratuity to workers employed in factories, plantations, shops and establishments. The West Bengal Governor Promulgated an Ordinance on the 3rd June, 1971 prescribing a similar scheme of gratuity. This ordinance has since been replaced by the West Bengal Employees' Payment of Compulsory Gratuity Act, 1971, enacted by the President on 28 the August, 1971. Gratuity is also Being paid by some employers to their workers under Awards and Agreements. Since the enactment of the Kerla and the West Bengal Acts, some other State Governments have also voiced their intention of enacting similar measures in their respective States. It has become necessary, therefore, to have a Central law on the subject so as to ensure a uniform pattern of payment of gratuity to the employees throughout the country. The enactment of a Central law would also avoid different treatment to the employees of establishments having branches in more than one State when, under the conditions of their service, the employees are liable to transfer from one State to another. The proposal for Central legislation on gratuity was discussed in the Labour Ministers' Conference held at New Delhi on 24th and 25 the August, 1971 and also in the Indian Labour Conference at its session held on the 22nd and 23rd October, 1971. There was general agreement at the Labour Minister' Conference and the Indian Labour Conference that Central legislation on payment of gratuity might be under taken as early as possible. It is accordingly proposed to undertake such legislation. In enacting the President's act for west Bengal in August 1971, care has been taken to so design its provisions that they could serve as far as possible as norms for the Central law. the Bill has, therefore, been drafted on the lines of the West Bengal Employees' Payment of Compulsory Gratuity Act, 1971 with some modifications which have been made in the light of the views expressed at the Indian Labour Conference relating to forfeiture of gratuity in cases of dismissal for gross misconduct. The Bil

Sections

Type to filter. 16 sections.

1. 1Short title, extent, application and commencement
2. 2
3. 3
4. 4Payment of gratuity
5. 5Power to exempt
6. 6Nomination
7. 7Determination of the amount of gratuity
8. 7BPowers of Inspectors
9. 8Recovery of gratuity
10. 9Penalties
11. 10Exemption of employer from liability in certain cases
12. 11Cognizance of offence
13. 12Protection of action taken in good faith
14. 13Protection of gratuity
15. 14Act to override other enactments, etc
16. 15Power to make rules