Hi.Pooja
Under the provision of Payment of Gratuity Act 1972.
Following are the Requisites
Applicability:Sec 1
Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more employees.
Employee:Sec2(e)
All employees irrespective of status or salary
Entitlement:
On completion of five years’ service except in case of death or
disablement
Sec.6 Rule 6
Nomination
To be obtained by employer after expiry of one year’s service, in Form ‘F’
Maximum Ceiling: Sec 4(3)
Rs.3, 50,000
Rule 9:Penalties to the Employer
Imprisonment for 6 months or fine upto Rs.10, 000 for avoiding to make payment by making false state-ment or representation.
Imprisonment not less than 3 months and upto one year with fine on default in complying with the provisions of Act or Rules.
Qualifying period
On rendering of 5 years’ service, either termination, resignation or retirement.
Rule 4:Display of Notice
On conspicuous place at the main entrance in English language or the language understood by majority of employees of the factory.
Sec.8 Rule 8
Recovery of Gratuity
To apply within 30 days in Form I when not paid within 30 days.After leaving the preset Employer
Sec.4(6)
Forfeiture of Gratuity
On termination of an employee for moral turpitude or riotous or disorderly behavior.Wholly or partially for willfully causing loss, destruction of property etc
The gratuity willl be calculated according to the formula:
Gratuity = Last drawn salary x 15x No. of years of service/26
I hope this will be of some help to you.
Rgds
Munam