GRATUITY
Obligation of the Employer
1. The employer is usually required to submit a notice of opening of an establishment to the controlling authority of the area in form A containing names and addresses of the establishment, employer, number of persons employed, nature of business etc.
2. The employer shall display conspicuously a notice at or near the main entrance of the establishment in bold letters in English and in a language understood by the majority of employees.
3. It is the duty of the employer to determine the amount of gratuity as soon as it becomes payable. Failure to do so shall render him liable to pay the interest at the prevailing rate from time taken.
4. To obtain insurance in the prescribed manner for his liability for payment of gratuity under the Act or establish approved gratuity fund in the prescribed manner.
Penalties.
If any person makes a false statement for the purpose of avoiding any payment to be made by him under this Act he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both. If an employer contravenes any provision of the Act, he shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year or with a fine, which may vary from ten thousand rupees to twenty thousand rupees.
No court shall take cognizance of any offence punishable under this Act save on a complaint made by or under the authority of the appropriate Government :
Provided that where the amount of gratuity has not been paid, or recovered, within six months from the expiry of the prescribed time, the appropriate Government shall authorise the controlling authority to make a complaint against the employer, whereupon the controlling authority shall, within fifteen days from the date of such authorisation, make such complaint to a Magistrate having jurisdiction to try the offence.
No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. more
1. The employer is usually required to submit a notice of opening of an establishment to the controlling authority of the area in form A containing names and addresses of the establishment, employer, number of persons employed, nature of business etc.
2. The employer shall display conspicuously a notice at or near the main entrance of the establishment in bold letters in English and in a language understood by the majority of employees.
3. It is the duty of the employer to determine the amount of gratuity as soon as it becomes payable. Failure to do so shall render him liable to pay the interest at the prevailing rate from time taken.
4. To obtain insurance in the prescribed manner for his liability for payment of gratuity under the Act or establish approved gratuity fund in the prescribed manner.
Penalties.
If any person makes a false statement for the purpose of avoiding any payment to be made by him under this Act he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both. If an employer contravenes any provision of the Act, he shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year or with a fine, which may vary from ten thousand rupees to twenty thousand rupees.
No court shall take cognizance of any offence punishable under this Act save on a complaint made by or under the authority of the appropriate Government :
Provided that where the amount of gratuity has not been paid, or recovered, within six months from the expiry of the prescribed time, the appropriate Government shall authorise the controlling authority to make a complaint against the employer, whereupon the controlling authority shall, within fifteen days from the date of such authorisation, make such complaint to a Magistrate having jurisdiction to try the offence.
No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. more
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Social security laws are only on paper and eyewash. They in no way beneficial to poor and middle class working in non government organisations. As far as pension is concerned I doubt most retirees hardly get Rs.3K. Now as far as Gratuity is concerned,most middle class employees are denied the benefit of Gratuity calculation as per prescribed formula and paid maximum Rs. 10Lacs which is actually the tax free limit under Income Tax. Lately the said limit is hiked to RS.20 Lacs, but it is not made applicable w.e.f January, 2016, which is the date from which made applicable to CENTRAL GOVERNMENT EMPLOYEES, thus discriminating - but our Constitution says," ALL ARE EQUAL IN THE EYES OF THE LAW". THIS FORUM SHOULD FIGHT FOR THE SAME. more
Apr 02
there is always a confusion about eligiblity of Gratuity.. is it payable only after continuous service of 5 years with a particular or can be paid to some who have completed 4 years and 240 days....pls. clarify.... more
Feb 26
Gratuity one becomes eligible after the completion of 5 years of work in a particular organization. more
Jan 09
intimation Resp sir             pl z suggest me how to get my gratuity. one pharma company bombay base dwd pharmaceutical cheating i hv completed 4 year 10 month and i hv given notice period another 2 month as i am a conform employee of that organization but company ignoring to settele my a/cso advise me how to get my gratuity RegardsManas Patrabhubaneswarodisha. On Thursday, 17 December 2015 11:52 AM, MOHIT PANDE wrote: more
Jan 03
In fact as per gratuity act 1972 payment is calculated as under. (Basic pay +DA)X Length of service in years X 15 / 26. Length of service of 6 months or more is considered as full years and less than 6 months is ignored. Amount is to be paid by the establishment and is no way linked to EPF. more
Dec 17
