PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010 [REPEALED]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