Question

payment of gratuity act 1972

Answer 1

In India gratuity is a type of retirement benefit. It is a payment made with the intention of helping an employee monetarily after his retirement. It was held by the Supreme Court of India in Indian Hume Pipe Co Ltd v Its Workmen, that the general principal underlying gratuity scheme is that by service over a long period the employee is entitled to claim a certain amount as retirement benefit. The Payment of Gratuity Act was passed by Indian Parliament in 21 August 1972. The act came in force on 16 September 1972.