The Payment of Gratuity Act, 1972 deals with provisions for gratuity and imposes duty upon every establishment covered under this Act to provide benefits under this Act to all the eligible employees

 APPLICABILITY

•        This Act applies to every shops or establishments within the meaning of any law for the  time being in force in a State, in which 10 or more persons are employed or were  employed on any day of the preceding 12 months
•      A shop or establishment to which this Act has become applicable shall continue to be  government under this Act notwithstanding the number of persons employed therein at  any time after it has become applicable

 ELIGIBILITY

•       Every employee shall be eligible for the gratuity if he/she has completed 5 years of  continuous  service
•   If the person has worked for 5 years and 6 months, then he is deemed to have worked for 6  years but less than 6 months not to be considered
•  The gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than 5 years or,- On his superannuation, or -  On his retirement, or where his death or total disablement the condition of 5 years complete service will not be applicable
• For every completed year of service or part thereof in excess of six months the employer shall pay gratuity to an employee at the rate of fifteen days daily wages based on the rate of wages last drawn by the employee concerned