Vidhi Codex

Bare Act

The Payment of Gratuity Act 1972

Labour197219 sections

The Payment of Gratuity Act 1972 regulates the compulsory payment of gratuity, which is a lump sum retirement benefit given to employees. It applies to factories, mines, ports, oilfields, plantations, railways, and establishments employing ten or more people in India. This legislation matters greatly because it guarantees essential financial security to workers who have completed at least five years of continuous service. By legally protecting employees and their families, it ensures they receive monetary compensation upon retirement, resignation, death, or disablement, thereby fostering a stable, supportive, and fair working environment for the entire Indian private and public sector labor force.

Start reading →Read full ActSections
  1. 1. Short title, extent, application and commencement.
  2. 2. Definitions.
  3. 2A. Continuous service.
  4. 3. Controlling authority.
  5. 4. Payment of gratuity.
  6. 4A. Compulsory insurance.
  7. 5. Power to exempt.
  8. 6. Nomination.
  9. 7. Determination of the amount of gratuity.
  10. 7A. Inspectors.
  11. 7B. Powers of Inspectors.
  12. 8. Recovery of gratuity.
  13. 9. Penalties.
  14. 10. Exemption of employer from liability in certain cases.
  15. 11. Cognizance of offences.
  16. 12. Protection of action taken in good faith.
  17. 13. Protection of gratuity.
  18. 14. Act to override other enactments, etc.
  19. 15. Power to make rules.

PDF: pending for this language.