Payment of Gratuity Act

defrayment of boon Act, 1972 Outline Applicability of the Act (Sec 1) & Definitions (Sec 2) employee, superannuation, continuous profit (Sec 2(A)), remuneration Payment of top (Sec 4) o Continuous utility of non less(prenominal) than 5 yrs o Calculation of gratuity in case of seasonal worker employees, in case of employee employed after disablement, on retrenchment, for service beyond the age of superannuation, on resignation o Calculation of 15 old age wages in respect of mthly rated employee, raise-rated employee, daily wager for 26 days in a month o Entitlement to gratuity with discontinue terms o Withholding & forfeiture of gratuity Power to exonerate (Sec 5) fee of gratuity vis-a-vis curtailment of welfares by management finish of the amt. of gratuity (Sec 7) o Duty of an employer to determine gratuity amt. o personal manner of payment of gratuity & pd. f limitation to Controlling authority o Rate of interest Recovery of gratuity (Sec 8) o Delay in payment of gra tuity effect o Default in payment of gratuity or wages on part of employer Act to invert other enactments (Sec 14) 1 Wages Sec 2(s) B+DA + fillip wages * + Food Allowance (In case it is paid to Hotel Employees). Nomenclature of salary to the remuneration for the services rendered by a person where employed for work. non a part of wages under the Act, 1972 (b preventative, commission, HRA, OT, & any other border like tellers allowance non even if it is vide two-part settlements) * Bonus & incentive bonus paid separately Bonus would overwhelm incentive wages (Not even in case of a piece rated employees) Continuous ServiceRead Sec 2(A) in case of fracture 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 hunt evidence on the express issue. Other Issues Employee if estoppe d from claiming gratuity after having once received a sum See if acceptance of gratuity estoppel against the enactment Sec 14 Parrys (Cal) Employees Union v. Union of India, 1980 Lab IC (Cal HC) acquire of gratuity for service beyond the age of superannuation, if also maintainable? duration of superannuation of an employee is not relevant for the purpose of payment of gratuity on his retirement / resignation.Cannot be refused gratuity in terms of Sec 4(1)(b) for the stop 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 days wages for mthly rated employee day-after-day 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 mending his daily wages dividing his mthly wages by 30 15 days wages Cal & Guj H C & SC 15 days wages should be interpreted 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 add up wages recd. by an empl for a pd. of 3 mths immediately preceding the issue 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 slowing down the work Gratuity cannot be withheld even if disciplinary proceeding is pending against an employee. Gratuity of an employee disregard for willful slowing down of work cannot be withheld since there is no such bar in the Act.No deduction whatsoever, except as stipulated by Sec 4(6) pertaining to forfeiture on account of dismissal of an employee because of veritable mi sconduct 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 whatsoever lapses during his service is not tenable as his service has not been termination for any lapses. Retrenchment compensation whether can be set moody against gratuity Statutory liability u/Act, 1972 is not in place of any other entitlement, but stands on its own. Entitlement under two diff. laws would reckon upon the satisfaction of the essential requisites for claiming the sum due under the relevant edible of these two enactments 3