Friday 17 October 2014

The Payment of Gratuity Act 1972 Page 6

Attachment of employer’s property:
If the employer does not pay gratuity even after the order of court then the court or govt will make a report to the collector of the area where the employer has business. The collector will attach the property of employer and the property will be sold for payment of gratuity.

Case:
An employer cannot attach gratuity of employee under the order of court.
Mr. X is an employee who is due to retire and the employee was to receive gratuity, this employee had taken a loan from some other person and that person filed a case against the employee and requested the court that the gratuity should be forfeited.
In this case the court cannot order the forfeiture of gratuity because gratuity is the personnel gift to employee and it cannot be forfeited under court order.

Under Sec 13 if the employer is liable to pay gratuity then he cannot forfeit gratuity under any circumstance. However the employer may deduct gratuity for recovery of any loan or advance given to the employee.

Calculation of gratuity in case of becoming Handicap:
For calculation of gratuity in case of becoming handicap special provision is applied that the gratuity is calculated in parts e.g. if an employee has worked for eight years after which he met with an accident and he was given a new job. He worked on the new job for some years and retired in this case gratuity for the time period before retirement will be calculated with salary at the time of retirement and gratuity for the subsequent period will be calculated with the salary at the time of retirement.
If the employee has worked for less than five years before accident and less than five years after accident also, however total time is more than five years than gratuity will be payable to employee.

Sec 5 Exemption from law:
Under Sec 5 the appropriate govt may exempt any person from applicability of payment of gratuity act.  This can be done only if the employer wants to pay gratuity more than payment of gratuity act.
No other exemption can be provided in any other circumstance.

Employee: 2(e)
Employee is a person who provides employment (work) for money for the employer. Employee may be working in managerial, supervisory, skilled, unskilled type of work.
Every employee who has worked for five years or more is entitled to receive gratuity.

Employer: 2(b)
Employer means a person who has employees or workers working for the him.
For mines, ports, airports central govt is the employer. For factories manager is employer, for company M.D is employer. After the death of employer his family members are employer.

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