The Payment of Gratuity Act, 1972

The Payment of Gratuity Act, 1972 What is Gratuity? Gratuity shall be payable to an employee on the termination of his employment after he has rendered continues service for not less than five years – On his superannuation, or On his retirement or resignation, or On his death or disablement due to accident or disease; The condition of completion of five years continues service is not essential in case of the termination of the employment of any employee due to death or disablement. Generally, it was paid to the employee himself. However, in case of the death of the employee it shall be paid to the nominee or if no nomination has been made, to his heirs. Extent & Applicability: The Act 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 & Kashmir., The Act applies to: Every factory, mine, oilfield, plantation, port and railway company; Every shop or establishment within th