Upload
kshatriyas-thigala
View
238
Download
0
Embed Size (px)
Citation preview
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
1/22
THE PAYMENT OF
GRATUITY ACT,1972
PRESENTATION BYSHANKARNAG
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
2/22
INTRODUCTION
Gratuity means gifts or service often inreturn of favors and services.
In the present context, it means, a sum of
money paid to an employee at the end of
employment.
Gratuity in case of retirement,
superannuation or death helps family to
adjust in a new situation in which incomeceases partially or completely.
Gratuity Schemes, serves as an important
tool of social security.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
3/22
TO WHAT SHALL THE ACT
APPLY TO
Every factory, mine, oilfield, plantation,
port and railway company.
Every Shop or establishment if it employs
10 or more person in preceding one year.
Such other establishment in which 10 or
more employees are employed or were
employed on any day of preceding twelve
months.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
4/22
Payment of Gratuity
Gratuity shall be payable to an employee on thetermination of his employment after he has renderedcontinuous service for not less than five years, -
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident ordisease : Provided that the completion ofcontinuous service of five years shall not benecessary where the termination of theemployment of any employee is due to death ordisablement .
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
5/22
Payment Of Gratuity
in the case of death of the employee,gratuity payable to him shall be paid to-
His Nominee, or
If no nomination has been made, to his heirs,
and where any such nominees or heirs is a minor,
the share of such minor, shall be deposited with thecontrolling authority who shall invest the same for thebenefit of such minor in such bank or other financialinstitution, as may be prescribed, until such minorattains majority.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
6/22
Payment of Gratuity
For every completed year of service or part thereof inexcess of six months, the employer shall pay gratuity toan employee at the rate of fifteen days' wages based onthe rate of wages last drawn by the employee
concerned.
Provided that in the case of a piece-rated employee,daily wages shall be computed on the average of thetotal wages received by him for a period of three monthsimmediately preceding the termination of hisemployment, and, for this purpose, the wages paid forany overtime work shall not be taken into account.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
7/22
CALCULATING FORMULA
Provided further that in the case of an employee
who is employed in a seasonal establishment
and who is not so employed throughout the
year, the employer shall pay the gratuity at the
rate of seven days' wages for each season.
FIFTEEN DAYS WAGE=
(MONTHLY RATE OF WAGES LAST DRAWN BY HIM / 26) *
15
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
8/22
Payment of Gratuity
Gratuity Amount payable under Payment of Gratuity
Act enhanced from Rs.3.5 lakhs to Rs. 10 lakhs
As Per
Payment of Gratuity (Amendment) Act,2010 (No. 15 of
2010), dated 17-5-2010
Section 4 (4) now reads as
The amount of gratuity payable to an employee shall
not exceed Ten Lakh Rupees
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
9/22
Payment Of Gratuity
For the purpose of computing the gratuity payable to an
employee who is employed, after his disablement, on
reduced wages, his wages for the period preceding his
disablement shall be taken to be the wages received by
him during that period, and his wages for the periodsubsequent to his disablement shall be taken to be the
wages as so reduced.
Nothing in this section shall affect the right of anemployee to receive better terms of gratuity under any
award or agreement or contract with the employer.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
10/22
Payment Of Gratuity
Notwithstanding anything contained in
sub-section (1), - (a) the gratuity of an
employee, whose services have been
terminated for any act, willful omission ornegligence causing any damage or loss to,
or destruction of, property belonging to the
employer, shall be forfeited to the extent ofthe damage or loss so caused.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
11/22
Payment of Gratuity
The gratuity payable to an employee may be
wholly or partially forfeited
if the services of such employee have been
terminated for his riotous or disorderly conduct orany other act of violence on his part, or
if the services of such employee have been
terminated for any act which constitutes an offenceinvolving moral turpitude, provided that such
offence is committed by him in the course of his
employment.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
12/22
INSPECTORS
The appropriate Government may, by notification,appoint as many Inspectors, as it deems fit, for thepurposes of this Act.
The appropriate Government may, by general or specialorder, define the area to which the authority of anInspector so appointed shall extend and where two ormore Inspectors are appointed for the same area, alsoprovide, by such order, for the distribution or allocation of
work to be performed by them under this Act.
Every Inspector shall be deemed to be a public servantwithin the meaning of section 21 of the IPC, 1860 (45 of
1860).
andwheretwoormor
eInspector
sareappo
int
andwheretwoormor
eInspector
sareappo
int
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
13/22
POWER OF INSPECTORS
Require an employer to furnish such
information as he may consider
necessary. Enter and inspect.
Examine .
Exercise such other powers as may
be prescribed.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
14/22
RECOVERY OF GRATUITY
If the amount of gratuity payable is not paid by theemployer, within the prescribed time, to the person entitledthereto, the controlling authority shall, on an applicationmade to it in this behalf by the aggrieved person, issue acertificate for that amount to the Collector, who shall
recover the same, together with compound interest thereonat such rate as the Central Government may, bynotification, specify, from the date of expiry of theprescribed time, as arrears of land revenue and pay thesame to the person entitled thereto :Provided that the
controlling authority shall, before issuing a certificate underthis section, give the employer a reasonable opportunity ofshowing cause against the issue of such certificate:Provided further that the amount of interest payable underthis section shall, in no case exceed the amount of gratuity
payable under this Act.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
15/22
EXEMPTION OF EMPLOYER FROM
LIABILITY IN CERTAIN CASES
Where an employer is charged with an offencepunishable under this Act, he shall be entitled,upon complaint duly made by him and on givingto the complainant not less than three clear
days' notice in writing of his intention to do so, tohave any other person whom he charges as theactual offender brought before the court at thetime appointed for hearing the charge; and if,after the commission of the offence has been
proved, the employer proves to the satisfactionof the court (a) that he has used due diligence to enforce the
execution of this Act, and
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
16/22
Cont
(b) that the said other person committed
the offence in question without his
knowledge, consent or connivance, that
other person shall be convicted of theoffence and shall be liable to the like
punishment as if he were the employer
and the employer shall be discharged fromany liability under this Act in respect of
such offence :
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
17/22
PROTECTION OF GRATUITY
No gratuity payable under this Act and no
gratuity payable to an employee employed
in any establishment, factory, mine,
oilfield, plantation, port, railway companyor shop exempted under section 5 shall be
liable to attachment in execution of any
decree or order of any civil, revenue orcriminal court.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
18/22
CASE
Dena bank vs. Manjulaben M. Thakor(smt)
& Anr.(2012 LLR 648)
Forum: Kerala High Court
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
19/22
JUDGEMENT
The contention of the petitioner-bank was
that the deceased workman had
committed an act involving moral turpitude
& therefore was not entitled to the gratuityamt under sec (6)(b)(ii) of the gratuity Act
read with the plaintiff's Banks Service
regulations.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
20/22
Cont
The court, after perusal of the dismissal order by
the bank, observed that there was no direction in
the dismissal order for forfeiture of the gratuity
amt, which the deceased workman wasotherwise entitled to, it being a statutory right.
The charge sheet had not stated forfeiture of
gratuity on the ground of moral turpitude & no
inquiry had been conducted on that count. Also,the petitioner-bank had admittedly not initiated
any penal action with a view to forfeit the gratuity
amount.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
21/22
Cont
Thus, in the absence of a proper order by
the employer, the Court held the forfeiture
of gratuity of the employee to be not
sustainable.
8/12/2019 53651751 PPT Payment of Gratuity Act 1972 2
22/22
THANK YOU