Case on Gratuity Act

Payment of Gratuity Act , Gratuity Act , 1972 Section 1: Short, title, extent, application and commencement (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. (3-A) 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 date as the Central Government may, by notification, appoint. Section 2: Definitions In this Act unless the context otherwise requires,(a) "appropriate Government" means,(i) in relation to an establishment(a) belonging to, or under the control of, the Central Government, (b) having branches in more than one State, (c) of a factory belonging to, or under the control of, the Central Government, (d) of a major port, mine, oilfield or railway company, the Central Government, (ii) in any other case, the State Government;

(b) "completed year of service" means continuous service for one year; (c) "continuous service" means continuous service as defined in Section 2-A; (d) "controlling authority" means an authority appointed by the appropriate Government under Section 3; (e) "employee" means any person (other than