Payment of Gratuity Act

Payment of Gratuity Act, 1972 Outline Applicability of the Act (Sec 1) & Definitions (Sec 2) employee, superannuation, dogging attend to (Sec 2(A)), Wages Payment of gratuity (Sec 4) o Continuous service of non less than 5 yrs o Calculation of gratuity in courting of seasonal employees, in case of employee employed aft(prenominal) disablement, on retrenchment, for service beyond the age of superannuation, on resignation o Calculation of 15 eld salary in respect of mthly rated employee, piece-rated employee, daily wager for 26 age in a month o Entitlement to gratuity with better cost o Withholding & forfeiture of gratuity precedent to exempt (Sec 5) earnings of gratuity vis-a-vis curtailment of benefits by management De consequence of the amt. of gratuity (Sec 7) o Duty of an employer to determine gratuity amt. o Mode of payment of gratuity & pd. f limitation to authoritative authority o Rate of interest Recovery of gratuity (Sec 8) o Delay in payment of gratuity effec t o Default in payment of gratuity or wages on part of employer Act to override opposite enactments (Sec 14) 1 Wages Sec 2(s) B+DA + inducement wages * + Food Allowance (In case it is paid to Hotel Employees). Nomenclature of honorarium to the remuneration for the services rendered by a person where employed for scat. Not a part of wages under the Act, 1972 (bonus, commission, HRA, OT, & any other allowance like tellers allowance not even if it is vide bipartite settlements) * Bonus & incentive bonus paid separately Bonus would include incentive wages (Not even in case of a piece rated employees) Continuous ServiceRead Sec 2(A) in case of interruption of service due to illegal strike, the burden of proof lies upon the person who claims benefit under all circumstance. Where orders of Controlling / appellate Authority put the onus on employee HC held the normal rule by asking both the parties to draw evidence on the said issue. Other Issues Employee if estopped from cla iming gratuity after having once received a correspond See if acceptance of gratuity estoppel against the statute Sec 14 Parrys (Cal) Employees Union v. Union of India, 1980 Lab IC (Cal HC) Claim of gratuity for service beyond the age of superannuation, if also maintainable? Age of superannuation of an employee is not relevant for the purpose of payment of gratuity on his hideaway / resignation.Cannot be refused gratuity in terms of Sec 4(1)(b) for the period of service rendered beyond the age of superannuation. Cannot be contended that gratuity is payable for the service rendered by him upto the age of his superannuation u/Sec 2(r). Break in service to be seen Calculation of 15 long time wages for mthly rated employee Daily wages to be calculated for actual no. of working days which is 26 and not 30. Not to be calculated just by taking ? of his wages for a mth of 30 days. Not by fixing his daily wages dividing his mthly wages by 30 15 days wages Cal & Guj HC & SC 15 days wage s should be taken as wages earned in 15 days and not wages earned during a pd. of 15 days including the days on which the employee is not entitled to payment of wages 2Calculation of 15 days wages for piece rated employee Avg. of total wages recd. by an empl for a pd. of 3 mths immediately preceding the release of employment. Computed by dividing such total wages by the actual no. of days of work & not no. of days / no. of working days in the said pd. of 3 mths. (Wages payable for a day) x 15 Calculation of gratuity during pendency of disciplinary proceedings, & on dismissal for slowdown down the work Gratuity cannot be withheld even if disciplinary proceeding is pending against an employee. Gratuity of an employee dismissed for willful slowing down of work cannot be withheld since there is no such bar in the Act.No implication whatsoever, except as stipulated by Sec 4(6) pertaining to forfeiture on account of dismissal of an employee because of certain blow can be made from the payment of gratuity as payable to an employee. Kar HC Held Non-payment of gratuity to an employee on his retirement on account of some lapses during his service is not tenable as his service has not been termination for any lapses. Retrenchment compensation whether can be set off against gratuity Statutory liability u/Act, 1972 is not in lieu of any other entitlement, but stands on its own. Entitlement under both diff. laws would depend upon the satisfaction of the essential requisites for claiming the sum due under the relevant provisions of these two enactments 3