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PAYMENT OF GRATUITY ACT, 1972

PAYMENT OF GRATUITY ACT, 1972

- What is the Payment of Gratuity Act?

The Payment of Gratuity Act, 1972 provides for a lump sum payment to employees on retirement or resignation.


- Key Provisions

1. Payment of gratuity to employees
2. Eligibility criteria for gratuity payment
3. Calculation of gratuity
4. Time limit for payment of gratuity

- Applicability

1. Establishments with 10 or more employees
2. Factories, shops, and other establishments

- Benefits

1. Payment of gratuity to employees
2. Financial security for employees and their families
3. Improved employee morale and motivation
4. Compliance with labor laws

- Responsibilities of Employers

1. Pay gratuity to eligible employees
2. Calculate gratuity correctly
3. Maintain records and registers
4. Comply with inspection and certification requirements

- Penalties for Non-Compliance

1. Fines and imprisonment
2. Other legal consequences

- Key Features

1. Payment of gratuity to employees
2. Financial security for employees and their families
3. Improved employee morale and motivation
4. Compliance with labor laws