Act 015 of 2010 : Payment of Gratuity (Amendment) Act, 2010

Preamble

Payment of Gratuity (Amendment) Act, 20101

[Act 15 of 2010, Repealed by Act 23 of 2016*][17th May, 2010]

An Act further to amend the Payment of Gratuity Act, 1972

Be it enacted by Parliament in the Sixty-first Year of the Republic of India as follows-

1 Received the assent of the President on 17-5-2010 and published in the Gazette of India, Extra., Part II, Section 1, dated 18-5-2010, p. 1, No. 20.

* Ed.: Act 15 of 2010 repealed by Act 23 of 2016, S. 2 & Sch. I. See also S. 4 of the Repealing and Amending Act, 2016:

"4. Savings.- The repeal by this Act of any enactment shall not affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;

and this Act shall not affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing;

nor shall this Act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment hereby repealed;

nor shall the repeal by this Act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force."

SOR Statement of Objects and Reasons

Prefatory Note-Statement of Objects and Reasons.-The Payment of Gratuity Act, 1972 provides for payment of gratuity to the employees engaged in factories, mines, oil fields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto.

2. Sub-section (3) of Section 4 of the Act provides that the amount of gratuity payable to an employee shall not exceed three lakh and fifty thousand rupees. This amount was fixed with effect from the 24th September, 1997 by amendment to the Payment of Gratuity Act, 1972. There have been representations from trade unions and individuals to remove or enhance the ceiling on the maximum amount of gratuity payable under the Act.

3. Based on the representations and wide consultation with all stakeholders, it is now proposed to enhance the ceiling of three lakh and fifty thousand rupees on the maximum amount of gratuity payable under sub-section (3) of Section 4 of the Act to ten lakh rupees.

4. The Bill seeks to achieve the above objectives.

Section 1. Short title and commencement

1. Short title and commencement.-(1) This Act may be called the Payment of Gratuity (Amendment) Act, 2010.

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

Section 2. Amendment of Section 4 of Act 39 of 1972

2. Amendment of Section 4 of Act 39 of 1972.-In Section 4 of the Payment of Gratuity Act, 1972, in sub-section (3), for the words "three lakhs and fifty thousand rupees", the words "ten lakh rupees" shall be substituted.

SECTIONS