GOVERNMENT LAW COLLEGE, THIRUNELVELI

ASSIGNMENT

SUBJECT

Labour law 2

TITLE
Salient Features of Payment of Gratuity act, 1972

SUBMITTED TO
S. NANTHINI
III YEAR LLB –‘B’ SECTION

REG NO: 32301542

1
 INDEX

[Link] CONTENT PAGE NO

1 INTRODUCTION 4

SCOPE AND OBJECTIVE OF THE PAYMENT OF GRATUITY

2 5
ACT, 1972
KEY PROVISIONS UNDER THE PAYMENT OF GRATUITY
ACT, 1972

•APPLICABILITY

•CONTINUOUS SRVICE

•PAYMENT OF GRATUITY

•CALCULATION OF PAYMENT OF GRATUITY

3 5-14

•INSPECTORS AND THEIR POWERS

•NOMINATION AND DETERMINATION

•FORFEITURE OF GRATUITY

•RECOVERY OF GRATUITY

•POWER TO EXEMPT

4 EMPLOYEES NOT UNDER PAYMENT OF GRATUITY 15

5 PENALTIES UNDER THE PAYMENT OF GRATUITY 17

LABOUR RELATED PROVISIONS UNDER CONSTITUTION OF

6 19-21
INDIA, 1950

2
7 CONSTITUTIONAL VALIDITY 22

8 CONCLUSION 25

9 REFERENCE 26

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 Salient Features of Payment of Gratuity act, 1972

INTRODUCTION
Gratuity is a retirement benefit like the provident fund or pension. But
unlike pension, but like provident fund, it is a lump sum payment to
which the employee becomes entitled after rendering long and
meritorious service to the employer. But unlike provident fund where
a worker has also to contribute a part of his wages, gratuity is non-
contributory, and all the financial burden falls on the employer. It is
paid on his superannuation, death, disablement due to accident or
disease, retirement or resignation after rendering service for a
specified period.
Originally, it meant gratuitous payment, made by the employer to his
workmen at his pleasure to keep the workers contented. But with the
efflux of time the judiciary has transformed it into a legitimate claim
which workers could demand after rendering meritorious service to
the employer for a certain period. After the enactment of the Payment
of Gratuity Act, 1972 (PG Act) it has now become a statutory right.
The Payment of Gratuity (Amendment) Act, 2018 received the
presidential assent on 28 March 2018 and has been notified on 29
March 2018. According to the Notifications, the Central Government
has specified that the amount of gratuity payable to an employee shall
not exceed INR 2,000,000 (Indian Rupees Two Million). Further, for
the purposes of calculation of continuous service for the payment of
gratuity to employees who are on maternity leave, the Central
Government has specified that the total period of maternity leave shall
not exceed 26 weeks.

SCOPE AND OBJECTIVE OF THE PAYMENT OF GRATUITY

ACT, 1972

4
The Act lay out its objective to guarantee a standard pattern for
gratuity payments to employees across the nation in order to prevent
treating employees of organisations with branches in multiple states
differently when they may be required to transfer from one state to
another due to service requirements.
On August 21, the Act was approved by Parliament, and it became
operative on September 16 of that same year. All divisions of the
central, state, and local governments, as well as the military and local
governing bodies, are subject to the provisions of this Act. If certain
requirements are met, private organisations may fall under its
jurisdiction. It is a monetary reward given to an employee in
appreciation of his work and devotion to the company.

APPLICABILITY OF THE ACT

Section 1 of the Act states that the Act extends to the whole of India
except in cases of plantations and ports, where the state of Jammu and
Kashmir was exempted before 2019, where it was amended to extend
to the whole of India.
Further, the Act shall be applicable to the following:

1. Every manufacturing unit, mine, oil field, plantation, port, and

railway firm.

2. Every business, as defined by any law currently in effect with

regard to businesses and premises in a State, where ten or more
people are employed or were employed on any day during the
previous 12 months.

3. Any other businesses or groups of businesses where ten or more

people are employed or were employed on any day during the

5
 previous year, as the Central Government may designate in a
notification.

CONTINUOUS SERVICE
According to this Act, continuous service means uninterrupted service
during the employment period. This includes leaving due to sickness,
accident, layoff, strike, etc. If the interruption is for six months or one
year, then the employee is not entitled to gratuity benefits. They
should have worked for at least 190 days in a mine or coalfield-like
establishment (where the duration of work is only 6 months) and 240
days in other areas.

Recently, a question arose before the Supreme Court of India about

whether the services provided by the employees were regularised or
not and whether they were entitled to a gratuity amount or not in the
case of Netram Sahu v. State of Chhattisgarh (2018). The appellant
employee had, in all, rendered 25 years and 3 months of service (22
years and 1 month as a daily wager and 3 years and 2 months as a
regular work charge employee). However, the Appellant was not paid
the gratuity amount by the State after his retirement because, out of
the total period of 25 years of his service, he worked 22 years as a
daily wager and only 3 years as a regular employee. The Supreme
Court of India held that the state should release the gratuity amount to
the employee because the Appellant had actually rendered the service
for a period of 25 years. Because the services were regularised, the
appellant was entitled to claim their benefit for a period of 25 years,
regardless of the post and the capacity in which he worked for 22
years. This shows that whether the services were regularised or not, it
is of no significance to the continuous service under the said Act.

The different exceptions that qualify for an employee's continuous

service are described in Section 2A of the Act.

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CONTROLLING AUTHORITY
The controlling authority shall be appointed by the appropriate
government for the proper administration of this Act as per Section 3.
The government may also appoint different controlling authorities for
different areas.

PAYMENT OF GRATUITY
According to Section 4 of the Act, an employee is entitled to the
payment of gratuity if they have rendered five years of continuous
service upon their superannuation, retirement, resignation,
disablement, or death. However, five years of continuous service are
not mandatory in cases where the termination is due to death or
disability. A retired person is also entitled to a gratuity amount along
with his pension. This was held by the Supreme Court in the case of
Allahabad Bank and others v. All India Allahabad Bank Retired
Employees Association (2009), where the Honourable Court held that
pensionary benefits. may include both pension amount and gratuity
amount, but gratuity amount is a must to be paid to the employees.
Further, the Act provides for the services rendered for at least 6
months, where the gratuity amount will be calculated at the rate of
fifteen days wages based on the rate of wages last drawn by the
employee concerned, provided that the amount paid for the overtime
work will not be considered.
The amount of gratuity shall not exceed Rs. 10 Lakhs.

When does gratuity become payable

7
A gratuity must be paid to an employee upon termination of
employment if he or she has provided continuous service for five
years or more, according to Section 4(1) of the Payment of Gratuity
Act of 1972.

(a) It must be upon his retirement, or

(b) Upon his resignation or retirement, or

(c) Upon his demise or disability brought on by an accident or illness.

In Kothari Industrial Corporation v. Appellate Authority (1997), the

Andhra Pradesh High Court held that a mere absence from work
without a valid excuse does not, for the purposes of this Act,
constitute a breach of continuity of service.

To whom the gratuity can be paid

1. In the first case, the gratuity shall be paid to the employee himself.

2. If an employee passes away, any gratuity due to him must be paid

to his nominee or, if no nominee has been made, to his heirs.

3. If either of the above-mentioned parties is a minor, the share of the

minor must be deposited with the controlling authority, who will
invest it for the minor's benefit in the bank or other financial
institution specified until the minor reach majority, or, if no nominee
has been made, to the employee's heirs.

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Threshold limit of gratuity

The employees will benefit from the rise in the gratuity limit from 3.5
lacs to 10 lacs under Section 4(3), The gratuity cap was also enhanced
from Rs. 3.5 lac to Rs. 10 lac in Section 10(10) of the Income Tax
Act, 1961.

However, as of March 29, 2018, the gratuity limit for individuals

covered by the Payment of Gratuity Act, 1972, has risen from 10 lacs
to 20 lacs through the notification S.O. 1420 (E) dated March 29,
2018.

FORFEITURE OF PAYMENT
Section 4(6) lays down two situations in which an individual's gratuity
can be forfeited:

1. If there has been a termination of service for any act, wilful

omission or any negligent act by the individual which caused damage
to the property of the employer, the gratuity shall be forfeited up to
the extent of the damage.

2. There can be a partial or whole forfeiture of gratuity for riotous and

disorderly behaviour, any other act of violence committed by him, or
any act of moral turpitude committed by him while acting in the
course of his employment.

In the case of Bharat Gold Mines Ltd. v. Regional Labour

Commissioner (1986), it was determined by the Karnataka High Court
that, in cases of employee theft involving moral turpitude, gratuity is
9
wholly forfeited in accordance with Section 4(6)(b), Considering this,
the employer cannot withhold the employee's owed gratuity when
service has not been terminated for any of the aforementioned
reasons.

In the case of Travancore Plywood Industries v. Regional Joint Labour

Corporation of Kerala (1996), it was decided that the employee's
gratuity could not be withheld just because the employer's land had
not been abandoned by the employee. Therefore, under Section 4(6)
of the Payment of Gratuity Act, 1972, an employee's unwillingness to
turn over inhabited corporate property is not a sufficient reason to
deny gratuity.

According to the Bombay High Court in the case of Air India Ltd. v.
the Appellate Authority (1998), gratuities cannot be withheld from
departing employees because they did not vacate their service
quarters.

The question of the procedure for forfeiting gratuities has also been
raised in many cases. The Allahabad High Court held in Hindalco
Industries Ltd. v. Appellate Authority and Others. (2004) that in
accordance with Section 4(6)(a) of the Act, the quantum of forfeiture
must be determined, necessitating an order, which can only be issued
after providing the employee with an opportunity. The Karnataka
High Court ruled in Canara Bank v. Appellate Authority (2012) that
the decision to forfeit a gratuity may only be made after calculating
the loss and giving the employee a chance to be heard. The Gujarat
High Court ruled in Union Bank of India v. K.R. Ajwalia (2004) that
notice and hearing are necessary steps in the forfeiture of gratuity
process. The Madhya Pradesh High Court ruled in Manager, Western
Coalfields Ltd. v. Prayag Modi (2018) that an employee's gratuity
may only be withheld in accordance with the Act's established

10
procedure. The employer does not have unrestricted authority to
decide to withhold the gratuity at his whim.

In a recent judgement by the Delhi High Court, Union Bank Of India

v. Sh D.C. Chaturvedi (2022), it was observed that the three
requirements of notification, quantification, and hearing must all be
met, according to the accepted legal view, before a gratuity can be
forfeited.

COMPULSORY INSURANCE
Section 4A of the Act provides compulsory insurance to every
employer other than those belonging to the central government or
state government through the Life Insurance Corporation or any other
company. However, those employers are exempted from this
provision who have an established and registered gratuity fund in their
company. The government may also make rules for the enforcement
of this section as and when necessary. Any violation of this provision
by anyone may lead to a penalty.

POWER TO EXEMPT
Section 5 of the Act provides the power to exempt the appropriate
government by notification from having to declare any establishment
a factory, mine, oilfield, plantation, port, railway company, or shop
exempt from gratuity if the government is of the opinion that the
establishment has favourable benefits, not less than what this Act has
been providing. The same law applies to any employee or class of
employees.

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DETERMINATION OF THE AMOUNT OF GRATUITY
Section 7 of the Act, lays down the rules for the determination of the
amount of gratuity. The person entitled to receive the gratuity amount
shall send an application in writing to the employer. The employer
shall calculate the gratuity amount and provide notice in writing to the
concerned employee and the controlling authority. The payment
should be made within 30 days from the date it is due to the
employee. Failure to pay within the prescribed limit will result in the
payment of simple interest. However, if the delayed payment is
because of the employee, then the employer is not entitled to pay the
simple interest.

NOMINATION
When to file for nomination

A nomination under Section 6 must be submitted by an employee

within 30 days of the end of their first year of employment in order to
be considered under the Payment of Gratuity Act, 1972. This would
imply that the statute mandates that an employee submit a nomination
within 30 days after completing a year of service. Though, this is not
the case. Employers demand that new recruits submit the nomination
form when they first join the company. As a result, you can consult
your employer if

you are unsure about submitting the nomination form.

Who can be nominated

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Only "family members" may be nominated by an employee, and only
then may anybody else be nominated if there are no "family"
members.

According to the Gratuity Act, a male member's "family" is defined as

his wife, children (married or not), dependent parents, dependent
parents of his wife, and, if any, the widow and children of any
predeceased sons.

For a female employee, the term "family" refers to her spouse, her
children (whether they are married or not), her dependent parents, her
husband's dependent parents, and, if any, the widow and any children
of her predeceased son.

The Gratuity Act does not provide a female employee with the option
to remove her husband and his dependent parents from the list of
nominees, in contrast to the Employees' Provident Fund Scheme
(EPF), which does. A 1987 Amendment to the Act removed the
possibility of excluding the husband from the definition of family.

Remember that, unlike EPF, gratuity nominations do not end

automatically upon marriage. Given that you would gain a spouse,
who would then be considered "family," if you had nominated anyone
else (assuming you had no "family"), you would need to submit a new
nomination after being married. However, if you designated your
dependent parents before getting married, such designation will
remain valid after getting married, and your company is required to
give gratuity benefits to that individual in the event of your untimely
death.

CALCULATION OF GRATUITY

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The elements that are used to determine the gratuity amount are listed
below. The amount also depends on how long an individual has
worked for the organisation and when he was last paid.

Gratuity Number of years last drawn salary 15/26

For instance, if XYZ has been employed by a company for 20 years

and received Rs. 25,000 as his most recent basic plus DA amount,

For XYZ, the gratuity amount is equal to 20 25,000 15/26, or Rs.

2,88,461.54.

However, a company has the option of giving an employee a larger

gratuity. Additionally, for the number of months in the most recent
employment year, everything over six months is rounded up to the
next number, and anything under six months is rounded down to the
previous lower number.

RECOVERY OF GRATUITY
If the employer delays the payment of the gratuity amount under the
prescribed time limit, then the controlling authority shall issue the
certificate to the collector on behalf of the aggrieved party and recover
the amount, including the compound interest decided by the central
government, and pay the same to the person.

However, these provisions are subject to two conditions, as mentioned

in Section 8:

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The controlling authority should give the employer a reasonable
opportunity to show the cause of such an Act.

The amount of interest to be paid should not exceed the amount of

gratuity under this Act.

EMPLOYEES NOT COVERED UNDER THIS ACT

The organisation may pay gratuities even if they are not covered by
the Act. But for each year that has passed, a person's half-monthly
wage is used to determine how much gratuity they will receive. The
pay package consists of a base salary, a commission (depending on
sales), and a depreciation allowance.

For employees who are not covered by the Gratuity Act, the following
formula is taken into account while calculating the gratuity amount:

(15 last drawn salary amount length of service)/30 equals the gratuity
amount.

For instance, if you have worked for a company for 10 years and 8
months and make Rs. 50,000, the gratuity amount is determined as
follows:

Gratuity: (1550,000 11)/30 equals Rs. 2.75 lakh.

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An employee's tenure is counted as one year for purposes of
calculation. The previous number of completed years is taken into
account if the number of months worked in the most recent year is
less than six months. However, the year is regarded as a full year for
the purposes of calculation if the number of months completed in the
most recent year of service is greater than six months. Therefore, 11
years have been determined to be the working period. The number of
years of service would have been 10 years only if the service duration
had been 10 years and 4 months (or anything less than 6 months).

INSPECTORS AND THEIR POWERS

The government may appoint an inspector or inspectors who are
deemed to be public servants under Section 21 of the Indian Penal
Code for the purpose of ascertaining whether any of the provisions of
this Act are being violated or not complied with and taking the
necessary measures to ensure the fulfilment of all the provisions of
this Act.

Two additional provisions, Section 7-A and Section 7-B, dealing with
the appointment of inspectors for the purposes of the Act and their
powers, have been added to the original Act by the Payment of
Gratuity (Amendment) Act, 1984.

The government, by notification, appoints an inspector for specific

areas by designating them in particular.

The appointed inspector has certain powers to ascertain whether the

provisions of the Act are well complied with. These powers are as
follows:

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1. The inspector can demand that an employer provide whatever
information that he may deem necessary.

2. He can enter and inspect the premises that come under the Act to
examine the records or necessary documents.

3. He also has a right to inspect the employees on the premises.

4. If he believes that any offence has been committed, then he may

also make copies of the necessary documents that he examined.

5. The individuals are bound to furnish the relevant documents to the

inspectors as per the relevant laws such as Sections 175 and 176 of the
Indian Penal Code and Section 94 of the Code of Criminal Procedure,
1973.

PENALTIES UNDER THE PAYMENT OF GRATUITY ACT

Violation of the provisions of the Act shall entail certain penalties, as

stated in Section 9. They are:

1. To avoid any payment, if someone makes a false representation or

false statement, it shall be punishable with imprisonment for 6 months
or a fine up to Rs. 10,000 or both.

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2. Failure to comply with the provisions of this Act shall be
punishable by a minimum of 3 months, which may extend up to 1
year, or a fine of Rs. 10.000, which may extend up to Rs. 20,000.

3. Non-payment of gratuity under the Act will lead to an offence, and

the employer shall be punishable with imprisonment for at least 6
months, which may extend up to 2 years unless the court provides a
sufficient reason for less payment.

COGNIZANCE OF OFFENCES AS PER PAYMENT OF

GRATUITY ACT
As per Section 11, the court cannot take cognizance of the offences
punishable under this Act unless the amount of gratuity to be paid has
not been paid or recovered within 6 months from the expiration of the
prescribed time. In such cases, the government shall authorise the
controlling authority to make a complaint where the authority must
make a complaint to the metropolitan magistrate or judicial magistrate
of first class within 15 days of the authorisation.

PROTECTION OF ACTION TAKEN IN GOOD FAITH

The controlling authority shall not be subject to any legal proceeding
if the acts done by him were done in good faith or under any rule or
order under Section 12 of the Act.

PROTECTION OF GRATUITY
As per Section 13, no exempted gratuity that is payable under this Act
to the employee by the employer shall be liable to the attachment of
any order or decree by any court.
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ACT TO OVERRIDE OTHER ENACTMENTS
As per Section 14, since the Payment of Gratuity Act is complete in
itself, this Act has an overriding effect on all provisions, regulations,
and statutes relating to gratuity. The landmark case for this provision
is the University of Delhi v. Ram Prakash and Ors. (2015), which
states that any provision that is more beneficial for the employees
should be considered to have an overriding effect.

POWER TO MAKE RULES

The power to make rules under Section 14 of the Payment of Gratuity
Act, 1927, shall rest with the appropriate government and be declared
by notification.

LABOUR RELATED PROVISIONS UNDER CONSTITUTION

OF INDIA
Part 3 ("Fundamental Rights") and Part 4 ("Directive Principles of
State Policy")

FUNDAMENTAL RIGHTS
Article 14: states that the State shall not deny to any person within the
territory of India equality before the law or equal protection of the
laws.

Article 16: provides for equality of opportunity in matters of public

employment. It states that no citizen shall be discriminated against on
the grounds of religion, race, caste, sex, descent, place of birth,

19
residence or any of them. The state, under this Article, is also
empowered to make special provisions for the underprivileged
classes.

Right to Freedom Article 19: Protection of certain rights regarding

freedom of speech, etc.-(1) All citizens shall have the right(c) to form
associations or unions; Right against Exploitation.

Article 21: protects the right to life and personal liberty of every
person. The interpretation of the term 'life' by the Supreme Court has
evolved significantly to include in its ambit various rights that
contribute to the personal liberty of the individual.

Article 23: Prohibition of traffic in human beings and forced labour. -

(1) Traffic in human beings and beggar and other similar forms of
forced labour are prohibited and any contravention of this provision
shall be an offence punishable in accordance with law.

Article 24: Prohibition of employment of children in factories, etc. No

child below the age of fourteen years shall be employed to work in
any factory or mine or engaged in any other hazardous employment.

DIRECTIVE PRINCIPLES OF STATE POLICY

Article 38: the state shall strive to promote the welfare of the people
by securing. and protecting, as effectively as it can, social order where
justice, social, economic, and political, shall inform all institutions of
national life.

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Article 39: Certain principles of policy to be followed by the State.
The State shall, in particular, direct its policy towards securing-(a) that
the citizens, men and women equally, have the right to an adequate
means of livelihood; (d) that there is equal pay for equal work for both
men and women.(c) that the health and strength of workers, men and
women, and the tender age of children are not abused and that citizens
are not forced by economic necessity to enter avocations unsuited to
their age or strength; (f) that children are given opportunities and
facilities to develop in a healthy manner and in conditions of freedom
and dignity and that childhood and youth are protected against
exploitation and against moral and material abandonment.

Article 41: Right to work, to education and to public assistance in

certain cases. -The State shall, within the limits of its economic
capacity and development, make effective provision for securing the
right to work, to education and to public assistance in cases of
unemployment, old age, sickness and disablement, and in other cases
of undeserved want.

Article 42: Provision for just and humane conditions of work and
maternity relief. The State shall make provision for securing just and
humane conditions of work and for maternity relief.

Article 43: Living wage, etc., for workers.- The State shall endeavour
to secure, by suitable legislation or economic organisation or in any
other way, to all workers, agricultural, industrial or otherwise, work, a
living wage, conditions of work ensuring a decent standard of life and
full enjoyment of leisure and social and cultural opportunities and, in
particular, the State shall endeavour to promote cottage industries on
an individual or co-operative basis in rural areas.

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Article 43-A: Participation of workers in management of industries.
The State shall take steps, by suitable legislation or in any other way,
to secure the participation of workers in the management of
undertakings, establishments or other organisations engaged in any
industry.

VALIDATION OF AMENDMENTS MADE IN THIS ACT

The rules made have to be presented before both houses of parliament
when they are in session. If both houses are in conformity with the
annulments or modifications, then they shall be applicable
immediately; otherwise, such modifications will have no effect.

WHO IS AN EMPLOYER UNDER THIS ACT

An employee is defined in Section 2(e)

Employee means any person (other than apprentice) employed on

wages, in any establishment, factory, mine, oilfield, plantation, port,
railway company or shop, to do any skilled, semi-skilled, or unskilled,
manual, supervisory, technical or clerical work, whether the terms of
such employment are express or implied, and whether or nor such
person is employed in a managerial or administrative capacity, but
does not include any such person who holds a post under the Central
Government or a State Government and is governed by any other Act
or by any rules providing for payment of gratuity." as any person who
is paid wages in an establishment,

As defined in Section 1(3) of the Payment of Gratuity Act, 1972, to

perform any manual, supervisory, technical, or clerical work,
regardless of whether the terms of the employment are express or
implied and regardless of whether the employee holds a managerial or
22
administrative position. But the definition tends to exclude any such
individual who occupies a position with the federal or state
governments and is subject to another Act or any guidelines governing
the payment of gratuities.

CONSTITUTIONAL VALIDITY
There has been a debate on considering teachers as employees.
Teachers who impart students education were ruled not to be
considered employees who avail of gratuity benefits under this Act

AHMEDABAD PRIVATE PRIMARY TEACERS

Vs
ADMINISTRATIVE OFFICER AND OTHERS ON 13
JANUARY 2004
The Supreme Court asked the legislature to take cognizance and
provide the teachers with gratuity benefits through statutes wherever
necessary.

Therefore, through the 2009 Amendment Act, the term "employee"

has now heen expanded to include any person hired to perform any
type of labour. As a result, a teacher is considered an employee for
purposes of the Act.

More recently, the Supreme Court,

INDEPENDENT SCHOOLS’ FEDERATION OF INDIA

(REGD.)
Vs
23
UNION OF INDIA AND ANOTHER”

Upheld the Payment of Gratuity (Amendment) Act, 2009’s

constitutional validity and held that the Amendment aims to bring
equality and provide teachers with equitable treatment. It’s difficult to
label it as an arbitrary or arrogant activity.

Notably, the aforementioned Amendment Act was introduced to

extend the benefit of gratuity to teachers who had previously been
denied it by incorporating them into the category of “employee”. The
Court ruled that private schools “should not succeed” when asserting
a vested right resulting from a flaw because acceptance would be at
the expense of the teachers, who would lose the intended advantage.
The Court upheld the Amendment Act’s legality and ordered private
schools to pay employees and teachers within six weeks, along with
interest, in accordance with the Act’s provisions. If this is not done,
the employees and teachers may file a lawsuit in the appropriate
forum to have the payment made in accordance with the Act’s
requirements.

CONCLUSION
The Payment of Gratuity Act, 1927, is a welfare statute provided for
the welfare of the employees, who are the backbone of any
organisation, company, or startup. The gratuity amount encourages the
employee to work efficiently and improve productivity. Recently, by
the Payment of Gratuity (Amendment) Act, 2018, the central
government has tried to promote social welfare by providing leverage
to female employees who are on maternity leave from 'twelve weeks
to 'twenty six weeks.

However, the scope of this Act is limited to large-scale companies or

organisations and is not applicable to organisations where the number
24
of employees is less than 10. Yet, the Act in its entirety is complete,
and therefore it overrides other Acts and statutes in relation to
gratuity. The only need of the hour is to change or modify the
implementation of the Act as this Act is still not followed by many
companies or corporations.

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REFERENCE

S.N. MISRA, LABOUR AND INDUSTRIAL LAWS

S.C. SRIVASTAVA, INDUSTRIAL RELATIONS AND LABOUR

LAWS

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