Objective and Applicability of the Payment of Gratuity Act, 1972 – It is an Act in order to protect the financial interest of an employee. The Payment of Gratuity Act, 1972 is applicable to any company/ establishment employing 10 or more employees.
Eligibility of Entitlement of Gratuity – An employee irrespective of his salary is entitled to gratuity if he has worked for continuous 5 years or more. Gratuity is payable to an employee on i) superannuation, ii) resignation and iii) death/ disablement.
Maximum Amount of Gratuity – An employee can claim a maximum of Rs.10,00,000/- as gratuity under this Act.
Wages – Wages is calculated only on the basic and dearness allowance.
Recovery of Gratuity – An employee who is entitled to gratuity can file a complaint in Form N before the Controlling Authority in order to recover his gratuity.
When Gratuity can be Forfeited – Gratuity payable to an employee can be forfeited only when his service has been terminated on the ground of wilful negligence causing loss to the company.
If you have more queries on gratuity feel free to contact a nearby Labour Law Advocate in Kolkata.