THE PAYMENT OF GRATUITY ACT, 1972
ACT NO. 39 OF 1972 · Enacted on [21st August, 1972.]
An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto.
- Section 1. Short title, extent, application and commencement.
- Section 2. Definitions.
- Section 2A. Continuous service.
- Section 3. Controlling authority.
- Section 4. Payment of gratuity.
- Section 4A. Compulsory insurance.
- Section 5. Power to exempt.
- Section 6. Nomination.
- Section 7. Determination of the amount of gratuity.
- Section 7A. Inspectors.
- Section 7B. Powers of Inspectors.
- Section 8. Recovery of gratuity.
- Section 9. Penalties.
- Section 10. Exemption of employer from liability in certain cases.
- Section 11. Cognizance of offences.
- Section 12. Protection of action taken in good faith.
- Section 13. Protection of gratuity.
- Section 14. Act to override other enactments, etc.
- Section 15. Power to make rules.
Footnotes
Page 2
- 1. Ins. by Act 26 of 1984, s. 2 (w.e.f. 18-5-1984).
- 2.16th September, 1972, vide notification No. S.O. 601(E), dated 16th September, 1972, see Gazette of India, Extraordinary, PartII, sec. 3(ii).
- 3. Subs. by Act 26 of 1984, s. 3, for clause (c) and the Explanations (w.e.f. 18-5-1984).*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu andKashmir and the Union territory of Ladakh.
Page 3
- 1. Subs. by Act 47 of 2009, s. 2, for clause (e) (w.e.f. 3-4-1997).
- 2. Subs. by Act 22 of 1987, s. 2, for “and the widow” (w.e.f. 1-10-1987).
- 3. The proviso omitted by s. 2, ibid. (w.e.f. 1-10-1987).
- 4. Subs. by Act 12 of 2018, s. 2, for clause (k) (w.e.f. 29-3-2018).
Page 4
- 1. Subs. by Act 25 of 1984, s. 2, for clause (r) (w.e.f. 1-7-1984).
- 2. Ins. by Act 26 of 1984, s. 4 (w.e.f. 18-5-1984).
- 3. The words “imposing a punishment or penalty or” omitted by Act 22 of 1987, s. 3 (w.e.f. 1-10-1987).
Page 5
- 1. Explanation inserted by Act 22 of 1987, s. 3 (w.e.f. 1-10-1987).
- 2. Subs. by Act 12 of 2018, s. 3, for “twelve weeks” (w.e.f. 29-3-2018).
- 3. Subs. by Act 22 of 1987, s. 4, for the second proviso (w.e.f. 1-10-1987).
Page 6
- 1. Subs. by Act 25 of 1984, s. 3, for “an employee employed in a seasonal establishment” (w.e.f. 1-7-1984).
- 2. Explanation inserted by Act 22 of 1987, s. 4 (w.e.f. 1-10-1987).
- 3. Subs. by Act 15 of 2010, s. 2, for “three lakhs and fifty thousand rupees” (w.e.f 24-5-2010).
- 4. Subs. by Act 12 of 2018, s. 4, for “ten lakh rupees” (w.e.f. 29-3-2018).
- 5. Subs. by Act 25 of 1984, s. 3, for “shall be wholly forfeited” (w.e.f. 1-7-1984).
- 6. Sub-section (7) omitted by Act 34 of 1994, s. 3 (w.e.f 24-5-1994).
- 7. Ins. by Act 22 of 1987, s. 5 (w.e.f. 1-10-1987).
Page 7
- 1. Section 5 renumbered as sub-section (1) thereof by Act 26 of 1984, s. 5 (w.e.f. 18-5-1984).
- 2. Ins. by s. 5, ibid. (w.e.f. 18-5-1984).
- 3. Ins. by Act 22 of 1987, s. 6 (w.e.f. 1-10-1987).
Page 8
- 1. Subs. by Act 22 of 1987, s. 7, for sub-section (3) (w.e.f. 1-10-1987).
- 2. The Explanation omitted by Act 25 of 1984, s. 4 (w.e.f. 1-7-1984).
- 3. Ins. by s. 4, ibid. (w.e.f. 1-7-1984).
- 4. Subs. by s. 4, ibid., for clause (c) (w.e.f. 1-7-1984).
- 5. Clause (c) re-lettered as clause (d) thereof by s. 4, ibid. (w.e.f. 1-7-1984).
- 6. Clause (d) re-lettered as clause (e) thereof by s. 4, ibid. (w.e.f. 1-7-1984).
Page 9
- 1. Subs. by Act 25 of 1984, s. 4, for “nominee” (w.e.f. 1-7-1984).
- 2. The proviso ins. by s. 4, ibid. (w.e.f. 1-7-1984).
- 3. Ins. by s. 5, ibid. (w.e.f. 1-7-1984).
Page 10
- 1. Subs. by Act 22 of 1987, s. 8, for “at the rate of nine per cent. per annum” (w.e.f. 1-10-1987).
- 2. The provisos inserted by s. 8, ibid. (w.e.f. 1-10-1987).
- 3. Subs. by s. 9, ibid., for “one thousand rupees” (w.e.f. 1-10-1987).
- 4. Subs. by s. 9, ibid., for certain words (w.e.f. 1-10-1987).
- 5. Subs. by s. 9, ibid., for “three months” (w.e.f. 1-10-1987).
Page 11
- 1. Subs. by Act 34 of 1994, s. 4, for “Presidency Magistrate or a Magistrate of the first class” (w.e.f. 24-5-1994).
- 2. Ins. by Act 25 of 1984, s. 6 (w.e.f. 1-7-1984).
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