Understanding the Payment of Gratuity Act 1972: Who's Covered and Can You Claim After Disciplinary Termination?

Hi,

Could you please tell me which types of establishments are covered under the Payment of Gratuity Act 1972? Can anyone claim gratuity after a service of 5 years or more if they have been terminated due to disciplinary action?

Hi,

The Payment of Gratuity Act is applicable to any factory, shop, or establishment, educational institution employing more than 10 employees. An employee who has completed 5 years of continuous service, though terminated after conducting a departmental inquiry, is entitled to gratuity unless terminated for an offense involving moral turpitude, etc. That means the misconduct for which he is terminated plays a role.

S.M. Paranjape, Advocate