1) Application: To every factory, mine, oilfield, plantation, port, railway company, shops and establishments (where 10 or more persons are employed).

2) Eligibility: Gratuity to be paid to an employee after termination of his service, if has rendered continuous service of not less than 5 years. If termination is due to death or disablement, then 5 years service is not required.

3) Rate: 15 days wages for every completed year of service. For seasonal establishments, at the rate of 7 days wages for each season. The maximum gratuity amount shall not exceed Rs 3,50,000/-.

4) Duties of employer:a. To obtain insurance for his liability for payment towards gratuity.b. To register the establishment with the Controlling authority (Form A).c. To ensure each employee who has completed one year of service makes a nomination.d. To keep in his safe custody, every nomination, fresh nomination or alteration of nomination.e. To pay gratuity to an employee within 30 days from the demand. Any dispute regarding quantum etc., to deposit the amount with the controlling authority.f. To intimate the closure of the establishment, to the controlling authority, before 60 days of the closure. Form C.g. To intimate changes in name, address, employer, nature of business etc to the Controlling authority. Form B.h. To display a notice at main entrance, in English and language understood by the majority of the employees, specifying the name of the officer to receive notices on behalf of the employer, under the act.      i. To display an abstract of the act and rules in English and language understood by the majority of the employees in a place near the main entrance.

5) Duties of Employees:a. Each employee who has completed one year of service shall make a nomination, within 30 days of the completion of one year service.b. If family is present, then the nomination shall be made to a family member and not to a third party. No family, nomination can be to third parties; when family comes, cancel third party and nominate family member.c. To apply for gratuity within 30 days of it becomes payable.

6)Authorities:a.      Controlling authority(Assistant labor Commissioner) b.     Appellate authority( Regional labour commissioner)

7) Punishments for Employers:a.      Making false statement or false representation: Imprisonment up to 6 months or fine up to 1000 rupees or both.b.     Contravention of any provisions of the act or rules: Imprisonment up to 1 year or fine up to 1000 rupees or both.

Important Forms:

a.     Form A: Notice of opening

b.    Form B: Notice of changes in Form A.

c.    Form C: Notice of closure of establishment

d.    Form F : Nomination

e.     Form G : Fresh nomination

f.      Form H: Modification of Nomination

g.    Form I: Application of gratuity by an employee

h.    Form J:  Application of gratuity by  a nominee

i.      Form K: Application of gratuity by a legal heir

j.      Form U: Abstract of the act and rules