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Section 1, Payment Of Gratuity Act 1972: Short Title, Extent, Application & Commencement

Section 1 of the Payment of Gratuity Act, 1972 — 'Short title, extent, application and commencement', reads as follows:

(1) This Act may be called the Payment of Gratuity Act, 1972.

(2) It extends to the whole of India:

Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir.

(3) It shall apply to—

  (a) every factory, mine, oilfield, plantation, port and railway company;

  (b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;

  (c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.

(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.

(4) It shall come into force on such date as the Central Government may, by notification, appoint.





Extra Notes for Readers

(1) The Act came into force w.e.f. 16th September, 1972, vide notification No. S.O. 601(E), dated 16th September, 1972.

(2) Sub-section (3A) was inserted by Act 26 of 1984, s. 2 (w.e.f. 18-May-1984).

(3) Preamble of the Payment of Gratuity Act, 1972: An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto.




This page was last updated on 29th March 2018.

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