Section 1. Short title, extent, application and commencement.

(1) This Act may be called the Payment of Gratuity Act, 1972.

(2) It extends to the whole of India:

Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir*.

(3) It shall apply to—

(a) every factory, mine, oilfield, plantation, port and railway company;

(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;

(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.

^1[(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.]

(4) It shall come into force on such date2 as the Central Government may, by notification, appoint.

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Note: In the legacy archives, footnotes are grouped by original PDF page numbers rather than by section.

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).