Payment of Gratuity and Need for insurance, Slides of Law

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PAYMENT OF GRATUITY AND NEED FOR

INSURANCE: COMPARISON OF

FUNCTIONS AND NEED OF ONE IN THE

LIGHT OF THE OTHER

INTRODUCTION

• The Payment of Gratuity Act, 1972:
• The Payment of Gratuity Act 1972 is a social security enactment.
• An Act to provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, Railway companies, shops or other establishments.
• The significance of this legislation lies in the acceptance of the principle of gratuity as a compulsory statutory retire benefit

The Payment of Gratuity Act,

• Gratuity shall be payable to an employee on the termination of his employment after he has provided continuous service for not less than five years.

COMPULSORY INSURANCE IN

PAYMENT OF GRATUITY ACT, 1972

• Section 4A: COMPULSORY INSURANCE:
• The Payment of Gratuity (Amendment) Act, 1987 has prescribed provisions for compulsory insurance for employer’s liability for payment towards the gratuity under the Act from the Life Insurance Corporation of India establishment under the Life Insurance Corporation of India Act,1956 or any other prescribed Insurer.

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