Section 1

Short title, extent, application and commencement.

The Payment of Gratuity Act, 1972

  • Act 39 of 1972
  • Ministry of Labour and Employment
About this Act

An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto.

All sections
    (1) This Act may be called the Payment of Gratuity Act, 1972.
     (2) It extends to the whole of India:
     Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir*.
     (3) It shall apply to--
         (a) every factory, mine, oilfield, plantation, port and railway company;
         (b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
         (c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
     1[(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.]
     (4) It shall come into force on such date2 as the Central Government may, by notification, appoint

Notes

1. Ins. by Act 26 of 1984, s. 2 (w.e.f. 18-5-1984).
2.16th September, 1972, vide notification No. S.O. 601(E), dated 16th September, 1972, see Gazette of India, Extraordinary, Part II, sec. 3(ii).
*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and Kashmir and the Union territory of Ladakh.

Source: India Code (Legislative Department, Govt. of India). Check the official Gazette before relying on it in court. Not legal advice. Free legal aid: 15100 (NALSA) · Know your rights

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