(1) Gratuity shall be payable to an employee—
(a) on his superannuation, kb) on his retirement or resignation,
(c) on his death or total disablement due to accident or disease, after completion of not less than five years of continuous service:
Provided that the completion of continuous service of five Controlling authority.
Payment o f gratuity.
1.1332(j) THE CALCUTTA GAZETTE, EXTRAORDINARY, AUGUST 28, 1971 [PART V
Explanation.—Poi- the purposes of this section, total disablement means such disablement as permanently incapacitates an employee for all work which he was capable of performing before the accident or disease resulting in such disablemen
(2) Notwithstanding anything contained in sub-section (1).
no gratuity shall be payable to an employee whose employment has been terminated for his gross misconduct.
Explanation.—For the purpose of sub-section (2), "gross misconduct" means,—
(a) any act or wilful omission on the part of the employee resulting in loss or damage to. or destruction of, property belonging to or owned by the employer ;
Or Power to exempt.
Nomination.
(b) any serious act of violence on the part of the employee ; or
(r) any act on the part of the employee which constitutes an offence involving moral turpitude punishable under the Indian Penal Code.
(3) In the case of death of an employee, the gratuity shall be payable to the nominee of the employee or in the absence of a nominee to his heirs.
(4) The employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned, for every completed year of service or part thcreof in excess of six months:
Provided that the amount of gratuity payable to an employee shall not exceed fifteen months' wages:
Provided further that nothing in this section shall affect the right to any better terms of gratuity or retirement benefits under any award or agreement or contract with the employer.
5. The State Government may, by notification and subject to such conditions as may be specified in the notification, exempt any factory. plantation, shop or establishment to which this Act applies from the operation of the provisions of this Act if, in the opinion of the State Government, the employees in such factory. plantation, shop or establishment are in receipt of benefits not less favourable than the benefits conferred under this Act.
6. i I) Each employee who has completed one year of service shall make. within such time as may be prescribed, nomination for the purpose of sub-section (3) of section 4 in such form arid in such manner as may be prescribed.
(2) An emplo,,ee may in his nomination distribute, the amount of gratuity nayable to him under this Act amongst more than one nominee.
(3) If an employee has a family at the time of making a nomination, the nomination shall be in favour of one or more members belonging to his. family, and any nomination made by such employee in favour of a person not belonging to his family shall be void.
(4) If at the time of making a nomination the employee ks no family. the noinina!inn may be in favour of any person or per sons but if the emp!oyee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall ma!;.., ‘..,- thin such time as may be prescribed, a fresh' nomination ir' favour of one or More members laelon6- ing to his faMily.
45 of 1860.
'MIT V] TfIE CALCUTTA GAZETTE, EXTRAORDINARY, AUGUST 28, 1971 1632(k)
(5) A nomination may, subject to the provisions of subsections (3) and (4), be modified by an employee at any time, after giving a written notice of his intention to do so in such form and in such manner as may be prescribed.
(6) If a nominee predeceases tii&employee, the interest of the nominee shall revert. to the employee who shall make a fresh nomination in respect of such interest.