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Section 5, Payment Of Gratuity Act 1972: Power To Exempt

Section 5 of the Payment of Gratuity Act, 1972 — 'Power to exempt', reads as follows:

(1) The appropriate Government may, by notification, and subject to such conditions as may be specified in the notification, exempt any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act if, in the opinion of the appropriate Government, the employees in such establishment, factory, mine, oilfield, plantation, port, railway company or shop are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act.

(2) The appropriate Government may, by notification and subject to such conditions as may be specified in the notification, exempt any employee or class of employees employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the operation of the provisions of this Act, if, in the opinion of the appropriate Government, such employee or class of employees are in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under this Act.

(3) A notification issued under sub-section (1) or sub-section (2) may be issued retrospectively a date not earlier than the date of commencement of this Act, but no such notification shall be issued so as to prejudicially affect the interests of any person.





Extra Notes for Readers

(1) Section 5 was renumbered as sub-section (1) thereof by Act 26 of 1984, s. 5 (w.e.f. 18-May-1984).

(2) Sub-section (2) was inserted by Act 26 of 1984, s. 5, (w.e.f. 18-May-1984).

(3) Sub-section (3) was inserted by Act 22 of 1987, s. 6 (w.e.f. 1-Oct-1987).





This page was last updated on 29th March 2018.

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