Payment of Gratuity Act,1972

Payment of Gratuity Act,1972 is the act which is developed for the welfare of retired employees. It provides life security to retired employees by providing a certain amount after retirement to live their lives peacefully after retirement. The objective of the Payment of Gratuity Act, 1972 is to provide a gratuity to retired employees. This act understands that it is essential to give a gratuity to employees as an asset for future security. It provides gratuity to the employees who work in the oil fields, plantations, mines, ports, railways, etc. 

Brief Study on Payment of Gratuity Act,1972 

Payment of Gratuity Act, 1972 is a law introduced by the government of India for providing one-time gratuity at the time of retirement of employees. In this gratuity, the wages of 15 days every month or a wage of 6 months at one time is provided to the employee after retirement. Although, employees will get this facility, irrespective of the reason behind retirement. Whether he gets retired because of the physical disability or superannuation rules, he will get the gratuity, either monthly or yearly. In the beginning, the employees who worked in industries could take advantage of the Payment of Gratuity Act,1972. Still, employees related to any field can benefit from the laws of this act. 

Categories of Brief Study on Payment of Gratuity Act,1972 

This act falls under two broad categories. These are:

• social insurance legislation 
• social assistance legislation.

Under the social insurance legislation, the gratuity is provided to the employees who have fulfilled the firm’s suffix contributions or are eligible (as per the age or experience). In this type of legislation, employees get gratuity as their right. They will get the gratuity if they fulfil the eligibility criteria. 

Under the social assistance legislation, the employees also get the gratuity in the form of rights, but they do not have to fulfil any eligibility criteria here. It is given to those employees who are earning very much according to their needs to fulfil their minimum needs.

The Objective of the Payment of Gratuity Act,1972

Brief Study on Payment of Gratuity Act,1972 was launched by the Parliament of India on 21 August 1972, but it came into practice on 16 September 1972. The Payment of Gratuity Act 1972 provides government assistance to retired employees to live their lives satisfactorily and peacefully. It ensures that the employees do not face financial problems after retirement or that they will get reasonable medical assistance in times of any severe injury. 

Features of Brief Study on Payment of Gratuity Act,1972 

• All the provisions under this act are implemented without any unfair practice. All the employees working in the mines, factories, oil fields, plantations, and other related sectors get gratuity. 
• Brief Study on Payment of Gratuity Act,1972 facilitates a compulsory law in which all the employees serving more than five years in any firm will get a gratuity at retirement. It also provides gratuity even to retired employees due to superannuation, death, or resignation rules. Even though the act was introduced late in the firm, they will get all the benefits. 
• Both quasi-judicial machinery and executive regulate various functions like the nomination of employees or the amount of gratuity under the Brief Study on Payment of Gratuity Act, 1972. 
• The gratuity amount is already decided under the Brief Study on Payment of Gratuity Act,1972. No new government and authority can change the laws of this act.

Functions of the Controlling Authority Brief Study on Payment of the Gratuity Act,1972

• Approving the amount of gratuity of employees. 
• Specifying the period of giving the payment of gratuity. 
• The payment of gratuity should be transferred to the employee’s account within thirty days from the payable date.

Conclusion

Brief Study on Payment of Gratuity Act,1972 is important government legislation introduced to provide government assistance to employees. The Central government of India regulates all its functioning. Apart from the central government of India and the controlling authority of the Brief Study on Payment of Gratuity Act,1972, no other power can make in the act, and even cannot make changes. Under this act, the gratuity amount is decided by dividing the previous wages by 26 and multiplying it by 15. Every year, thousands of employees throughout the country take advantage of this act to live life peacefully.