Statutory gratuity for employees with five years' continuous service in establishments with ten or more persons, at fifteen days' wages per completed year, subject to a ceiling.
Payable on superannuation, retirement, resignation, death or disablement after five years' continuous service (five years not required on death or disablement); fifteen days' wages for every completed year or part exceeding six months; ceiling ₹20 lakh (as notified); forfeitable for wilful damage or moral turpitude.
Employers to obtain insurance for their gratuity liability (where brought into force by the State) or establish an approved gratuity fund.
The employer shall determine and pay gratuity within thirty days of it becoming payable, failing which simple interest is payable; disputes go to the Controlling Authority; appeal within sixty days.
False statements or representations to avoid payment, and contraventions of the Act, are punishable with imprisonment and fine.
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