Industrial Relations, Trade Unions, and Labour Legislation, 2nd Edition

Chapter 28

Payment of Gratuity Act, 1972

Chapter Objectives

This chapter will enable students to:

1. Understand the meaning of ‘gratuity’ and its importance for employees
2. Explain the scope of the Payment of Gratuity Act, 1972, and the definition of the terms ‘employee’ and ‘family’
3. Describe the eligibility conditions and the rate and maximum amount of gratuity payable under the Payment of Gratuity Act, 1972
4. Describe the provisions of the Payment of Gratuity Act, 1972, relating to protection of gratuity, conditions for its reduction and forfeiture and disposal of claims
5. Present an assessment of the Payment of Gratuity Act, 1972

Concept of Gratuity

Although payment of gratuity by employers has now been made statutorily obligatory, the term has ...