PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010 [REPEALED]

PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010 [REPEALED]

Preamble 1 - THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010

THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010

[Act No. 15 of 2010]

[17th May, 2010]

PREAMBLE

An Act further to amend the Payment of Gratuity Act, 1972.

Be it enacted by Parliament in the Sixty-first Year of the Republic of India as follows:--

Section 1 - Short title and commencement

(1)     This Act may be called the Payment of Gratuity (Amendment) Act, 2010.

(2)     It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Section 2 - Amendment of section 4 of Act 39 of 1972

In section 4 of the Payment of Gratuity Act, 1972, in sub-section (3), for the words "three lakhs and fifty thousand rupees", the words "ten lakh rupees" shall be substituted.

Statement of Objects and Reasons - PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010

STATEMENT OF OBJECTS AND REASONS

(1)     The Payment of Gratuity Act, 1972 provides for payment of gratuity to the employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto.

(2)     Sub-section (3) of section 4 of the Act provides that the amount of gratuity payable to an employee shall not exceed three lakh and fifty thousand rupees. This amount was fixed with effect from the 24th September, 1997 by amendment to the Payment of Gratuity Act, 1972. There have been representations from trade unions and individuals to remove or enhance the ceiling on the maximum amount of gratuity payable under the Act.

(3)     Based on the representations and wide consultation with all stakeholders, it is now proposed to enhance the ceiling of three lakh and fifty thousand rupees on the maximum amount of gratuity payable under sub-section (3) of section 4 of the Act to ten lakh rupees.

(4)     The Bill seeks to achieve the above objectives.