This Act provide for a scheme for the payment of gratuity to the employees provided that the comletion of continuous service of five years shall not be necessary where the fermination of employment of any employmee is due to death or disablement.

It applies to all employees engaged in factories, mines, oilfields, plantations, ports, railway companies. Any other shops or other establishments where 10 or more employees are employed.

Every employee who has rendered continuous service for not less than five years shall be entitled to gratuity on his superannuation or on his retirement or resignation or on his death or disablement application can be mute in Form-I. In case of seasonal establishments, gratuity shall be payable at the rate of 7 days wages for each season. The maximum gratuity payable under this Act is Rs. 3.5 lakhs.

Every employee who completes one year of service is eligible to file nomination in Form -F in duplicate to the employer. In case of death of employee, a nominee or legal heir shall submit the application in Form J or K for claim amount. The employer shall pay the gratuity within 30 days of the receipt of the application.

Any claim or Complaint under the Act shall be filed before the Assistant Labour Commissioner of the area concerned. Deputy Labour Commissioner of the area concerned is the Appellate Authority. If the employer fails to pay gratuity, it can be recovered as arrears of land revenue. Penalties are prescribed in the Act for violations.