Could some one advise me whether the hospitals are bound to pay gratuity to their employees when they retire on superannuation / resignation ? - CiteHR
Insolvency N Gst Professional
Srinath Sai Ram
Hr Manager
Compliance Manager

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The hospitals are covered by the Shops and Establishment Act. Earlier in certain states, the hospitals were exempted from the coverage of this Act following the writ petition given by the Managements. It appears that the stay has not yet been vacated in state like Kerala. There are hospitals which are not giving gratuity to the staff on retirement even after completing a continues service of 5 years. Could any one of our colleagues clarify about the coverage and eligibility of the Act with regard to Hospitals.
All shops and commercial establishments which were covered under the Shops Act at the time of introduction of the Gratuity Act would continue to be so covered under the Gratuity Act irrespective of any amendment, repeal or exemptions brought under the Shops Act.
Pl note that any notification for exemption under the Shops Act cannot apply to the Gratuity Act. The power to exempt from the provisions of the Gratuity Act is with the Central Government, and the State Legislature, either by amendment or by notification issued by the executive Government, cannot grant exemption to an establishment from the provisions of the Gratuity Act.
Section 5 of Payment of Gratuity Act and definition of Appropriate Government is relevant here.
Employees need to approach labour Commissioner with the issue of Hospital declining Gratuity to eligible employees.
I am sure if the case is well presented,all earlier employee also will get their due gratuity along with interest,

I am sure that the Hospital you are referring to has more than 10 employees and if that's the case then it is covered under the Shops & Establishment Act. You may go through the Payment of Gratuity Act 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
(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[(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 date2 as the Central Government may, by
notification, appoint.
Thanks and Regards

Dear, Submit your Gratuity claim in writing to the Management of the Hospital by Regd Post Ack due.If your claim is rejected approach jurisdictional Controlling Authority/Asst Labour Commissioner, Govt of Karnataka who will adjudicate the matter.Please start this process.Hospitals come under the purview of The Payment of Gratuity Act, 1972
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