Payment of Gratuity Act
The Payment of Gratuity Act has been amended from time to time to bring it in tune with the prevailing situation.
Recently the Act has been amended twice to enhance the ceiling on amount of gratuity as well as to widen the scope of the definition of “employee” under section 2 (e) of the Act. These amendments have been introduced by the Payment of Gratuity (Amendment) Act, 2010 with effect from May 24, 2010. The Gratuity Act provides for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments.
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