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Payment of Gratuity Act, 1972 and Rules, 1973

Gratuity is a sort of an award which an employer pays out of his gratitude, to an employee for his long and meritorious services, at the time of his retirement of termination of his services. The Payment of Gratuity Act, 1972 envisages to Provide a retirement benefit to the workmen who have rendered along and unblemished services to the employer not less than 5 years. This administration has notified the Puducherry Payment of Gratuity Rules, 1973

As per section 4 of the Act, every employee (other than an apprentice) irrespective of his wages is entitled to receive gratuity after he has rendered continuous service for 5 years or more. Gratuity is payable at the time of termination of his services, either (i) on superannuation, or (ii) on retirement or resignation, or (iii) on death or disablement due to accident or disease. Termination of services includes retrenchment. However, the condition of 5 years continuous service is not necessary if services are terminated due to death or disablement. In case of death of the employee, gratuity payable to him is to be paid to his nominee, and if no nomination has been made, then to his heirs

The Labour Officers and the Assistant Inspectors of Labour have been declared as inspectors under this act

Controlling Authority
The Labour Officers has been declared as Controlling Authority under this act

Appellate Authority
The Deputy Labour Commissioner has been declared as Appellate Authority under this act

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