(i)
Every
factory & shop, establishment in which 10 or more persons are employed. (i)
Any
person employed on wages/salary. (ii)
At
the time of retirement or resignation or on superannuation, an employee should
have rendered continuous service of not less than 5 yrs. (iii)
In
case of death or disablement, the gratuity is payable, even if the person has
not completed 5 yrs. of service. (i)
The
quantum of gratuity is to be computed @ 15 days wages for every completed year
of service or a part thereof exceeding 6 months, based on rate of basic wages
last drawn by the employee. GRATUITY = BASIC SALARY/26 * 15 Days * No. of
yrs of service. (*) Maximum Gratuity payable under the act is
Rs. 10,00,000/- (1)
Notice
of opening in form 'A' is to be submitted to the controlling authority as per
Rule 3 (1) (2)
The
Notice specifying the name & designation of the officer authorized by the
employer to receive on his behalf notice, under the act & rules is to be
displayed within the premises of the est. as per rule 4. (3)
Nomination
forms in form 'F' to be filled up of those employees, who have completed their
one year of service as per sec. 6 r/w rule 6. (4)
Abstract
of the Payment of Gratuity Act & Rules made there under is to be displayed
as per Rule 20. (5)
Compulsory
insurance of the employees is to be obtained Every employer has to obtain an insurance in
the manner prescribed, for his liability for payment towards the gratuity under
this Act, from the Life Insurance Corporation of India established under the
Life Insurance Corporation of India Act, 1956 (31 of 1956) or any other
prescribed insurer. The appropriate Government may, subject to
such conditions as may be prescribed, exempt every employer who had already
established an approved gratuity fund in respect of his employees and who
desires to continue such arrangement and every employer employing five hundred
or more persons who establishes an approved gratuity fund in the manner
prescribed from the provisions of sub-section (1). For the purpose of effectively implementing
the provisions of this section, every employer shall within such time as may be
prescribed get his establishment registered with the controlling authority in
the prescribed manner and no employer shall be registered under the provisions
of this section unless he has taken an insurance referred to in sub-section (1)
or has established an approved gratuity fund referred to in sub-section (2). Where an employer fails to make any payment
by way of premium to the insurance referred to in sub-section (1) or by way of
'contribution to all approved gratuity fund referred to in sub-section (2), he
shall be liable to pay the amount of gratuity due under this Act (including
interest, if any, for delayed payments) forthwith to the controlling authority. Whoever contravenes the provisions of
sub-section (5) shall be punishable with fine which may extend to ten thousand rupees
and in the case of a continuing offence with a further fine which may extend to
one thousand rupees for each day during which the offence continues. Explanation: In this section "approved
gratuity fund" shall have the same meaning as in clause (5) of section 2
of the Income-tax Act, 1961 (43 of 1961)]. In what contingency the employer has to pay
gratuity to his employees? The employer has to pay gratuity to his employees:- (a)
When
the service of the employee is terminated on superannuation; or (b)
When
the employee retires or resigns from service; or (c)
When
the employee dies while in service (In the case of death or disablement, due to
accident or disease, of the employee gratuity becomes payable to his nominee or
heirs even if he has rendered less than five yrs of service.) As soon as gratuity becomes payable, the
employer shall determine the amount of gratuity and give notice in writing to
the person to whom the gratuity is payable and also to the controlling
authority specifying the amount gratuity so determined. A person who is eligible for payment of
gratuity under this Act or any person authorised, in writing, to act on his
behalf shall send a written application to the employer, within such time and
in such form, as may be prescribed, for payment of such gratuity. The employer shall arrange to pay the amount
of gratuity within thirty days from the date it becomes payable to the person
to whom the gratuity is payable. If the amount of gratuity payable under
sub-section (3) is not paid by the employer within the period specified in
sub-section (3), the employer shall pay, from the date on which the gratuity
becomes payable to the date on which it is paid, simple interest at such rate,
not exceeding the rate notified by the Central Government from time to time for
repayment of long-term deposits, as that Government may, by notification
specify: Provided that no such interest shall be
payable if the delay in the payment is due to the fault of the employee and the
employer has obtained permission in writing from the controlling authority for
the delayed payment on this ground.] Forfeiture of gratuity (1)
Can
be done in the case of serious misconduct - If the action of the workmen is
willful or negligent causing loss to management, or acts of violence against
management or other employees or riotous or disordering behavior in or around
place of work, the management can forfeit gratuity. Dismissal in case of serious misconduct
gratuity of employee can be forfeited. Employee should not be wholly deprived of the
benefit of gratuity in case of dismissal on misconduct but actual loss only can
be deducted from gratuity amount. (2)
For
any act which constitutes an offence involving moral turpitude. Theft is an offence involving moral turpitude
and consequently if the services of an employee had been terminated for
committing theft in the course of his employment, the gratuity payable to him
stands forfeited. Can any Court attach gratuity payable under
the Act? Gratuity payable under the Act cannot be
attached in execution of any decree or order of any civil, revenue or criminal
Court. [See sub - rule (1)
or rule 7] Application for
Gratuity by an employee To, ------------------------ ------------------------ ------------------------ Sir, I beg to apply for
payment of gratuity to which I am entitled under sub- section (1) of section 4
of the Payment of Gratuity Act, 1972, on account of my
superannuation/retirement/resignation after completion of not less than five
years of continuous service/total disablement due to accident/total disablement
due to disease with effect from __________. Necessary particulars relating to
my appointment in the establishment are given in the statement below:- STATEMENT 1. Name in full : 2. Address in full : 3. Department/Branch/Section Where
last employed : 4. Post held with Ticket No. or
Serial No., if any . 5. Date of appointment : 6. Date & cause of termination of
service. : 7. Total period of service : 8. Amount of wages last drawn : 9. Amount gratuity claimed 2. I was rendered totally disabled as
a result of - (here give the details of nature of
disease or accident) The evidences witnesses in support of
my total disablement are as follows:- (Here give details) : 3.
Payment may please be made in cash/open or crossed bank cheque. 4.
As the amount of gratuity payable are less than Rupees one thousand. I shall
request you to arrange for payment of the sum due to me by Postal money order
at the address mentioned above after deducting postal money order commission
there form. Place: Date: Yours' faithfully, (Signature/Thumb-impression
of applicant employee) [See sub- rule (1) of Rule 3] Notice of Opening 1.
Name
and address of the Establishment.... 2.
Name
and designation of the Employer.... 3.
Number
of Persons employed ................ 4.
Maximum
number of persons employed on any day during the preceding twelve months with
date... 5.
Number
of employees covered by the Act... 6.
Nature
of Industry... 7.
Whether
Seasonal... 8.
Date
of Opening............. 9.
Details
of Head office/branches: (a)
Name
and address of the Head office... (b)
Name
and address of other branches in India... Number of employees I verify that the information furnished above
is true to the best of my knowledge and belief. Place: Date: (Signature of the Employer) (With name and designation)PAYMENT OF GRATUITY (MAHARASHTRA) RULES,
1972
Rule – 2. Eligibility.
Rule – 3. Calculation Of Gratuity.
Rule – 4. Other Requirements.
Rule – 5. Determination of the amount of gratuity. Section: 7.