Is the Gratuity Act Different for Indian Railways Compared to Private Companies?

Whether the Gratuity Act is applicable to the Department of the Indian Railways or if it has different implications compared to any private service?

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In general, the Gratuity Act applies to all establishments where ten or more employees work. However, specific provisions or exemptions may apply to government departments such as the Indian Railways. It is recommended to consult the Gratuity Act or seek legal advice to understand the exact implications for the Indian Railways regarding gratuity benefits.

Dear Harish,

After going through the definition of the employee under the Payment of Gratuity Act, 1972, it is clear that a person holding a post under the Central Government is not covered under this definition. Central Govt. employees are entitled to receive gratuity under their Service Rules only and not under this Act.

Regards,

R.N. Khola

Thank you, Mr. Khola.

Yes, the gratuity payable to employees of the Indian Railways is governed by the Railway Services (Pension) Rules, 1993. I resigned from railway service after completing 8 years of qualifying service. Am I eligible for any gratuity under the Railway Services (Pension) Rules, 1993?

I intend to claim the service gratuity that is payable under Rule 69(1) of the Railway Services (Pension) Rules, 1993.

Dear Harish,

Now it will be better to discuss the matter with your Railway HR administration of your zone who deals with such cases in their day-to-day dealings.

Regards,

R.N. Khola