Payment of Gratuity Act, 1972

o. 39 of 1972)

CONTENTS
Particulars
Preamble

tions

1 2

Short title, Extent, Application and Commencement Definitions Continuous Service Controlling Authorit Pa ment of gratuit Compulsor insurance Po#er to exempt %omination Determination of the amount of the 'ratuit (nspectors Po#ers of (nspectors +ecover of 'ratuit Penalties Exemption of emplo er from liabilit Cogni.ance of /ffences Protection of action ta0en in good faith Protection of 'ratuit Act to override other Enactments etc1 Po#er to ma0e +ules

2A 3 ! " $ &

!A

&A

&) *

1-

in certain cases

11

12

13

1!

1"

PREAMBLE 23, /3 1,&24 An Act to provide for a scheme for the pa ment of gratuit to emplo ees engaged in factories, mines, oilfields, plantations, ports, rail#a companies, shops or other establishments and for matters connected there#ith or incidental thereto1 )E it enacted b Parliament in the 5#ent 6third 7ear of +epublic of (ndia as follo#s 86 1. SHORT TITLE, EXTENT, APPLICATION AND COMMENCEMENT. ma be called the Pa ment of 'ratuit Act, 1,&21 91: 5his Act

92: (t extends to the #hole of (ndia 8 Provided that in so far as it relates to plantations or ports, it shall not extend to the State of ;ammu and <ashmir1 93: (t shall appl to 6 9a: ever factor , mine, oilfield, plantation, port and rail#a compan = 9b: ever shop or establishment #ithin the meaning of an la# for the time being in force in relation to shops and establishments in a State, in #hich ten or more persons are emplo ed, or #ere emplo ed, on an da of the preceding t#elve months= 9c: such other establishments or class of establishments, in #hich ten or more emplo ees are emplo ed, or #ere emplo ed, on an da of the preceding t#elve months, as the Central 'overnment ma , b notification, specif in this behalf1 93A: A shop or establishment to #hich this Act has become applicable shall continue to be governed b this Act not#ithstanding that the number of persons emplo ed therein at an time after it has become so applicable falls belo# ten1 9!: (t shall come into force on such date as the Central 'overnment ma , b notification, appoint1 2. DE!INITIONS. (n this Act, unless the context other#ise re>uires, 6 9a: ?appropriate 'overnment? means, 6 9i: in relation to an establishment 6 9a: belonging to, or under the control of, the Central 'overnment, 9b: having branches in more than one State, 9c: of a factor belonging to, or under the control of, the Central 'overnment, 9d: of a ma@or port, mine, oilfield or rail#a compan , the Central 'overnment, 9ii: in an other case, the State 'overnment= 9b: ?completed ear of service? means continuous service for one ear=

9c: ?continuous service? means continuous service as defined in section 2A= 9d: ?controlling authorit ? means an authorit appointed b the appropriate 'overnment under section 3= 9e: ?emplo ee? means an person 9other than an apprentice: emplo ed on #ages, in an establishment, factor , mine, oilfield, plantation, port, rail#a compan or shop, to do an s0illed, semi6s0illed, or uns0illed, manual, supervisor , technical or clerical #or0, #hether the terms of such emplo ment are express or implied, and #hether or not such person is emplo ed in a managerial or administrative capacit , but does not include an such person #ho holds a post under the Central 'overnment or a State 'overnment and is governed b an other Act or b an rules providing for pa ment of gratuit 1 Explanation 8 9f: ?emplo er? means, in relation to an establishment, factor , mine, oilfield, plantation, port, rail#a compan or shop 6 9i: belonging to, or under the control of, the Central 'overnment or a State 'overnment, a person or authorit appointed b the appropriate 'overnment for the supervision and control of emplo ees, or #here no person or authorit has been so appointed, the head of the Ainistr or the Department concerned, 9ii: belonging to, or under the control of, an local authorit , the person appointed b such authorit for the supervision and control of emplo ees or #here no person has been so appointed, the chief executive office of the local authorit , 9iii: in an other case, the person, #ho, or the authorit #hich, has the ultimate control over the affairs of the establishment, factor , mine, oilfield, plantation, port, rail#a compan or shop, and #here the said affairs are entrusted to an other person, #hether called a manager, managing director or b an other name, such person= 9g: ?factor ? has the meaning assigned to it in clause 9m: of section 2 of the 3actories Act, 1,!* 9$3 of 1,!*:= 9h: ?famil ?, in relation to an emplo ee, shall be deemed to consist of 6 9i: in the case of a male emplo ee, himself, his #ife, his children, #hether married or unmarried, his dependent parents and the dependent parents of his #ife and the #ido# and children of his predeceased son, if an , 9ii: in the case of a female emplo ee, herself, her husband, her children, #hether married or unmarried, her dependent parents and the dependent parents of her husband and the #ido# and children of her predeceased son, if an 8 Explanation 8 Bhere the personal la# of an emplo ee permits the adoption b him of a child, an child la#full adopted b him shall be deemed to be included in his famil , and #here a child of an emplo ee has been adopted b another person and such adoption is, under the personal la# of the person ma0ing such adoption, la#ful, such child shall be deemed to be excluded from the famil of the emplo ee= 9i: ?ma@or port? has the meaning assigned to it in clause 9*: of section 3 of the (ndian Ports Act, 1,-* 91" of 1,-*:=

9@: ?mine? has the meaning assigned to it in clause 9@: of sub6section 91: of section 2 of the Aines Act, 1,"2 93" of 1,"2:= 90: ?notification? means a notification published in the /fficial 'a.ette= 9l: ?oilfield? has the meaning assigned to it in clause 9e: of section 3 of the /ilfields 9+egulation and Development: Act, 1,!* 9"3 of 1,!*:= 9m: ?plantation? has the meaning assigned to it in clause 9f: of section 2 of the Plantations Cabour Act, 1,"1 9$, of 1,"1:= 9n: ?port? has the meaning assigned to it in clause 9!: of section 3 of the (ndian Ports Act, 1,-* 91" of 1,-*:= 9o: ?prescribed? means prescribed b rules made under this Act= 9p: ?rail#a compan ? has the meaning assigned to it in clause 9": of section 3 of the (ndian +ail#a s Act, 1*,- 9, of 1*,-:= 9>: ?retirement? means termination of the service of an emplo ee other#ise than on superannuation= 9r: ?superannuation?, in relation to an emplo ee, means the attainment b the emplo ee of such age as is fixed in the contract or conditions of service at the age on the attainment of #hich the emplo ee shall vacate the emplo ment= 9s: ?#ages? means all emoluments #hich are earned b an emplo ee #hile on dut or on leave in accordance #ith the terms and conditions of his emplo ment and #hich are paid or are pa able to him in cash and includes dearness allo#ance but does not include an bonus, commission, house rent allo#ance, overtime #ages and an other allo#ance1 2A. CONTIN"O"S SER#ICE. 3or the purposes of this Act, 6 91: an emplo ee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service #hich ma be interrupted on account of sic0ness, accident, leave, absence from dut #ithout leave 9not being absence in respect of #hich an order treating the absence as brea0 in service has been passed in accordance #ith the standing order, rules or regulations governing the emplo ees of the establishment:, la off, stri0e or a loc06out or cessation of #or0 not due to an fault of the emplo ee, #hether such uninterrupted or interrupted service #as rendered before or after the commencement of this Act1 92: #here an emplo ee 9not being an emplo ee emplo ed in a seasonal establishment: is not in continuous service #ithin the meaning of clause 91:, for an period of one ear or six months, he shall be deemed to be in continuous service under the emplo er 6 9a: for the said period of one ear, if the emplo ee during the period of t#elve calendar months preceding the date #ith reference to #hich calculation is to be made, has actuall #or0ed under the emplo er for not less than 6 9i: one hundred and ninet da s, in the case of an emplo ee emplo ed belo# the ground in a mine or in an establishment #hich #or0s for less than six da s in a #ee0= and 9ii: t#o hundred and fort da s, in an other case=

9b: for the said period of six months, if the emplo ee during the period of six calendar months preceding the date #ith reference to #hich the calculation is to be made, has actuall #or0ed under the emplo er for not less than 6 9i: ninet 6five da s, in the case of an emplo ee emplo ed belo# the ground in a mine or in an establishment #hich #or0s for less than six da s in a #ee0= and 9ii: one hundred and t#ent da s, in an other case= Explanation 8 3or the purpose of clause 92:, the number of da s on #hich an emplo ee has actuall #or0ed under an emplo er shall include the da s on #hich 6 9i: he has been laid6off under an agreement or as permitted b standing orders made under the (ndustrial Emplo ment 9Standing /rderDs: Act, 1,!$ 92- of 1,!$:, or under the (ndustrial Disputes Act, 1,!& 91! of 1,!&:, or under an other la# applicable to the establishment= 9ii: he has been on leave #ith full #ages, earned in the previous ear= 9iii: he has been absent due to temporar disablement caused b accident arising out of and in the course of his emplo ment= and 9iv: in the case of a female, she has been on maternit leave= so, ho#ever, that the total period of such maternit leave does not exceed t#elve #ee0s1 93: #here an emplo ee emplo ed in a seasonal establishment, is not in continuous service #ithin the meaning of clause 91:, for an period of one ear or six months, he shall be deemed to be in continuous service under the emplo er for such period if he has actuall #or0ed for not less than sevent 6five per cent of the number of da s on #hich the establishment #as in operation during such period1 3. CONTROLLIN$ A"THORIT%. 5he appropriate 'overnment ma , b notification, appoint an officer to be a controlling authorit , #ho shall be responsible for the administration of this Act and different controlling authorities ma be appointed for different areas1

&. PA%MENT O! $RAT"IT%. 91: 'ratuit shall be pa able to an emplo ee on the termination of his emplo ment after he has rendered continuous service for not less than five ears, 6 9a: on his superannuation, or 9b: on his retirement or resignation, or 9c: on his death or disablement due to accident or disease 8 Provided that the completion of continuous service of five ears shall not be necessar #here the termination of the emplo ment of an emplo ee is due to death or disablement 8 Provided further that in the case of death of the emplo ee, gratuit pa able to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and #here an such nominees or heirs is a minor, the share of such minor, shall be deposited #ith the controlling authorit #ho shall invest the same for the benefit of

such minor in such ban0 or other financial institution, as ma be prescribed, until such minor attains ma@orit 1 Explanation 8 3or the purposes of this section, disablement means such disablement as incapacitates an emplo ee for the #or0 #hich he #as capable of performing before the accident or disease resulting in such disablement1 92: 3or ever completed ear of service or part thereof in excess of six months, the emplo er shall pa gratuit to an emplo ee at the rate of fifteen da sD #ages based on the rate of #ages last dra#n b the emplo ee concerned 8 Provided that in the case of a piece6rated emplo ee, dail #ages shall be computed on the average of the total #ages received b him for a period of three months immediatel preceding the termination of his emplo ment, and, for this purpose, the #ages paid for an overtime #or0 shall not be ta0en into account 8 Provided further that in the case of an emplo ee #ho is emplo ed in a seasonal establishment and #ho is not so emplo ed throughout the ear, the emplo er shall pa the gratuit at the rate of seven da sD #ages for each season1 Explanation 8 (n the case of a monthl rated emplo ee, the fifteen da sD #ages shall be calculated b dividing the monthl rate of #ages last dra#n b him b t#ent 6six and multipl ing the >uotient b fifteen1 93: 5he amount of gratuit pa able to an emplo ee shall not exceed three la0hs and fift thousand rupees1 9!: 3or the purpose of computing the gratuit pa able to an emplo ee #ho is emplo ed, after his disablement, on reduced #ages, his #ages for the period preceding his disablement shall be ta0en to be the #ages received b him during that period, and his #ages for the period subse>uent to his disablement shall be ta0en to be the #ages as so reduced1 9": %othing in this section shall affect the right of an emplo ee to receive better terms of gratuit under an a#ard or agreement or contract #ith the emplo er1 9$: %ot#ithstanding an thing contained in sub6section 91:, 6 9a: the gratuit of an emplo ee, #hose services have been terminated for an act, #illful omission or negligence causing an damage or loss to, or destruction of, propert belonging to the emplo er, shall be forfeited to the extent of the damage or loss so caused1 9b: the gratuit pa able to an emplo ee ma be #holl or partiall forfeited 6 9i: if the services of such emplo ee have been terminated for his riotous or disorderl conduct or an other act of violence on his part, or 9ii: if the services of such emplo ee have been terminated for an act #hich constitutes an offence involving moral turpitude, provided that such offence is committed b him in the course of his emplo ment1 &A. COMP"LSOR% INS"RANCE. 91: Bith effect from such date as ma be notified b the appropriate 'overnment in this behalf, ever emplo er, other than an emplo er or an establishment belonging to, or under the control of, the Central

'overnment or a State 'overnment, shall, sub@ect to the provisions of sub6section 92:, obtain an insurance in the manner prescribed, for his liabilit for pa ment to#ards the gratuit under this Act, from the Cife (nsurance Corporation of (ndia established under the Cife (nsurance Corporation of (ndia Act, 1,"$ 931 of 1,"$: or an other prescribed insurer 8 Provided that different dates ma be appointed for different establishments or class of establishments or for different areas1 92: 5he appropriate 'overnment ma , sub@ect to such conditions as ma be prescribed, exempt ever emplo er #ho had alread established an approved gratuit fund in respect of his emplo ees and #ho desires to continue such arrangement, and ever emplo er emplo ing five hundred or more persons #ho establishes an approved gratuit fund in the manner prescribed from the provisions of sub6section 91:1 93: 3or the purpose of effectivel implementing the provisions of this section, ever emplo er shall #ithin such time as ma be prescribed get his establishment registered #ith the controlling authorit in the prescribed manner and no emplo er shall be registered under the provisions of this section unless he has ta0en an insurance referred to in sub6section 91: or has established an approved gratuit fund referred to in sub6section 92:1 9!: 5he appropriate 'overnment ma , b notification, ma0e rules to give effect to the provisions of this section and such rules ma provide for the composition of the )oard of 5rustees of the approved gratuit fund and for the recover b the controlling authorit of the amount of the gratuit pa able to an emplo ee from the Cife (nsurance Corporation of (ndia or an other insurer #ith #hom an insurance has been ta0en under sub6section 91:, or as the case ma be, the )oard of 5rustees of the approved gratuit fund1 9": Bhere an emplo er fails to ma0e an pa ment b #a of premium to the insurance referred to in sub6section 91: or b #a of contribution to an approved gratuit fund referred to in sub6section 92:, he shall be liable to pa the amount of gratuit due under this Act 9including interest, if an , for dela ed pa ments: forth#ith to the controlling authorit 1 9$: Bhoever contravenes the provisions of sub6section 9": shall be punishable #ith fine #hich ma extend to ten thousand rupees and in the case of a continuing offence #ith a further fine #hich ma extend to one thousand rupees for each da during #hich the offence continues1 Explanation 8 (n this section ?approved gratuit fund? shall have the same meaning as in clause 9": of section 2 of the (ncome6tax Act, 1,$1 9!3 of 1,$1:1 '. PO(ER TO EXEMPT. 91: 5he appropriate 'overnment ma , b notification, and sub@ect to such conditions as ma be specified in the notification, exempt an establishment, factor , mine, oilfield, plantation, port, rail#a compan or shop to #hich this Act applies from the operation of the provisions of this Act if, in the opinion of the appropriate 'overnment, the emplo ees in such establishment, factor , mine, oilfield, plantation, port, rail#a compan or shop are in receipt of gratuit or pensionar benefits not less favourable than the benefits conferred under this Act1

92: 5he appropriate 'overnment ma , b notification and sub@ect to such conditions as ma be specified in the notification, exempt an emplo ee or class of emplo ees emplo ed in an establishment, factor , mine, oilfield, plantation, port, rail#a compan or shop to #hich this Act applies from the operation of the provisions of this Act, if, in the opinion of the appropriate 'overnment, such emplo ee or class of emplo ees are in receipt of gratuit or pensionar benefits not less favourable than the benefits conferred under this Act1 93: A notification issued under sub6section 91: or sub6section 92: ma be issued retrospectivel a date not earlier than the date of commencement of this Act, but no such notification shall be issued so as to pre@udiciall affect the interests of an person1 ). NOMINATION. 91: Each emplo ee, #ho has completed one ear of service, shall ma0e, #ithin such time, in such form and in such manner, as ma be prescribed, nomination for the purpose of the second proviso to sub6section 91: of section !1 92: An emplo ee ma in his nomination, distribute the amount of gratuit pa able to him, under this Act amongst more than one nominee1 93: (f an emplo ee has a famil at the time of ma0ing a nomination, the nomination shall be made in favour of one or more members of his famil , and an nomination made b such emplo ee in favour of a person #ho is not a member of his famil , shall be void1 9!: (f at the time of ma0ing a nomination the emplo ee has no famil , the nomination ma be made in favour of an person or persons but if the emplo ee subse>uentl ac>uires a famil , such nomination shall forth#ith become invalid and the emplo ee shall ma0e, #ithin such time as ma be prescribed, a fresh nomination in favour of one or more members of his famil 1 9": A nomination ma , sub@ect to the provisions of sub6sections 93: and 9!:, be modified b an emplo ee at an time, after giving to his emplo er a #ritten notice in such form and in such manner as ma be prescribed, of his intention to do so1 9$: (f a nominee predeceases the emplo ee, the interest of the nominee shall revert to the emplo ee #ho shall ma0e a fresh nomination, in the prescribed form, in respect of such interest1 9&: Ever nomination, fresh nomination or alteration of nomination, as the case ma be, shall be sent b the emplo ee to his emplo er, #ho shall 0eep the same in his safe custod 1 7. DETERMINATION O! THE AMO"NT O! $RAT"IT%. 91: A person #ho is eligible for pa ment of gratuit under this Act or an person authorised, in #riting, to act on his behalf shall send a #ritten application to the emplo er, #ithin such time and in such form, as ma be prescribed, for pa ment of such gratuit 1 92: As soon as gratuit becomes pa able, the emplo er shall, #hether an application referred to in sub6section 91: has been made or not, determine the amount of

gratuit and give notice in #riting to the person to #hom the gratuit is pa able and also to the controlling authorit specif ing the amount of gratuit so determined1 93: 5he emplo er shall arrange to pa the amount of gratuit #ithin thirt da s from the date it becomes pa able to the person to #hom the gratuit is pa able1 93A: (f the amount of gratuit pa able under sub6section 93: is not paid b the emplo er #ithin the period specified in sub6section 93:, the emplo er shall pa , from the date on #hich the gratuit becomes pa able to the date on #hich it is paid, simple interest at such rate, not exceeding the rate notified b the Central 'overnment from time to time for repa ment of long6term deposits, as that 'overnment ma , b notification specif 8 Provided that no such interest shall be pa able if the dela in the pa ment is due to the fault of the emplo ee and the emplo er has obtained permission in #riting from the controlling authorit for the dela ed pa ment on this ground1 9!: 9a: (f there is an dispute as to the amount of gratuit pa able to an emplo ee under this Act or as to the admissibilit of an claim of, or in relation to, an emplo ee for pa ment of gratuit , or as to the person entitled to receive the gratuit , the emplo er shall deposit #ith the controlling authorit such amount as he admits to be pa able b him as gratuit 1 9b: Bhere there is a dispute #ith regard to an matter or matters specified in clause 9a:, the emplo er or emplo ee or an other person raising the dispute ma ma0e an application to the controlling authorit for deciding the dispute1 9c: 5he controlling authorit shall, after due in>uir and after giving the parties to the dispute a reasonable opportunit of being heard, determine the matter or matters in dispute and if, as a result of such in>uir an amount is found to be pa able to the emplo ee, the controlling authorit shall direct the emplo er to pa such amount or, as the case ma be, such amount as reduced b the amount alread deposited b the emplo er1 9d: 5he controlling authorit shall pa the amount deposited, including the excess amount, if an , deposited b the emplo er, to the person entitled thereto1 9e: As soon as ma be after a deposit is made under clause 9a:, the controlling authorit shall pa the amount of the deposit 6 9i: to the applicant #here he is the emplo ee= or 9ii: #here the applicant is not the emplo ee, to the nominee or, as the case ma be, the guardian of such nominee or heir of the emplo ee if the controlling authorit is satisfied that there is no dispute as to the right of the applicant to receive the amount of gratuit 1 9": 3or the purpose of conducting an in>uir under sub6section 9!:, the controlling authorit shall have the same po#ers as are vested in a court, #hile tr ing a suit, under the Code of Civil Procedure, 1,-* 9" of 1,-*:, in respect of the follo#ing matters, namel 86 9a: enforcing the attendance of an person or examining him on oath=

9b: re>uiring the discover and production of documents= 9c: receiving evidence on affidavits= 9d: issuing commissions for the examination of #itnesses1 9$: An in>uir under this section shall be a @udicial proceeding #ithin the meaning of sections 1,3 and 22*, and for the purpose of section 1,$, of the (ndian Penal Code, 1*$- 9!" of 1*$-:1 9&: An person aggrieved b an order under sub6section 9!: ma , #ithin sixt da s from the date of the receipt of the order, prefer an appeal to the appropriate 'overnment or such other authorit as ma be specified b the appropriate 'overnment in this behalf 8 Provided that the appropriate 'overnment or the appellate authorit , as the case ma be, ma , if it is satisfied that the appellant #as prevented b sufficient cause from preferring the appeal #ithin the said period of sixt da s, extend the said period b a further period of sixt da s1 Provided further that no appeal b an emplo er shall be admitted unless at the time of preferring the appeal, the appellant either produces a certificate of the controlling authorit to the effect that the appellant has deposited #ith him an amount e>ual to the amount of gratuit re>uired to be deposited under sub6section 9!:, or deposits #ith the appellate authorit such amount1 9*: 5he appropriate 'overnment or the appellate authorit , as the case ma be, ma , after giving the parties to the appeal a reasonable opportunit of being heard, confirm, modif or reverse the decision of the controlling authorit 1 7A. INSPECTORS. 91: 5he appropriate 'overnment ma , b notification, appoint as man (nspectors, as it deems fit, for the purposes of this Act1 92: 5he appropriate 'overnment ma , b general or special order, define the area to #hich the authorit of an (nspector so appointed shall extend and #here t#o or more (nspectors are appointed for the same area, also provide, b such order, for the distribution or allocation of #or0 to be performed b them under this Act1 93: Ever (nspector shall be deemed to be a public servant #ithin the meaning of section 21 of the (ndian Penal Code, 1*$- 9!" of 1*$-:1 7B. PO(ERS O! INSPECTORS. 91: Sub@ect to an rules made b the appropriate 'overnment in this behalf, an (nspector ma , for the purpose of ascertaining #hether an of the provisions of this Act or the conditions, if an , of an exemption granted thereunder, have been complied #ith, exercise all or an of the follo#ing po#ers, namel 86 9a: re>uire an emplo er to furnish such information as he ma consider necessar = 9b: enter and inspect, at all reasonable hours, #ith such assistants 9if an :, being persons in the service of the 'overnment or local or an public authorit , as he thin0s fit, an premises of or place in an factor , mine, oilfield, plantation, port, rail#a compan , shop or other establishment to #hich this Act applies, for the purpose of examining an register, record or notice or other document re>uired to be

0ept or exhibited under this Act or the rules made thereunder, or other#ise 0ept or exhibited in relation to the emplo ment of an person or the pa ment of gratuit to the emplo ees, and re>uire the production thereof for inspection= 9c: examine #ith respect to an matter relevant to an of the purposes aforesaid, the emplo er or an person #hom he finds in such premises or place and #ho, he has reasonable cause to believe, is an emplo ee emplo ed therein= 9d: ma0e copies of, or ta0e extracts from, an register, record, notice or other document, as he ma consider relevant, and #here he has reason to believe that an offence under this Act has been committed b an emplo er, search and sei.e #ith such assistance as he ma thin0 fit, such register, record, notice or other document as he ma consider relevant in respect of that offence= 9e: exercise such other po#ers as ma be prescribed1 92: An person re>uired to produce an register, record, notice *. RECO#ER% O! $RAT"IT%. (f the amount of gratuit pa able under this Act is not paid b the emplo er, #ithin the prescribed time, to the person entitled thereto, the controlling authorit shall, on an application made to it in this behalf b the aggrieved person, issue a certificate for that amount to the Collector, #ho shall recover the same, together #ith compound interest thereon at such rate as the Central 'overnment ma , b notification, specif , from the date of expir of the prescribed time, as arrears of land revenue and pa the same to the person entitled thereto 8 Provided that the controlling authorit shall, before issuing a certificate under this section, give the emplo er a reasonable opportunit of sho#ing cause against the issue of such certificate 8 Provided further that the amount of interest pa able under this section shall, in no case exceed the amount of gratuit pa able under this Act1 9. PENALTIES. 91: Bhoever, for the purpose of avoiding an pa ment to be made b himself under this Act or of enabling an other person to avoid such pa ment, 0no#ingl ma0es or causes to be made an false statement or false representation shall be punishable #ith imprisonment for a term #hich ma extend to six months, or #ith fine #hich ma extend to ten thousand rupees or #ith both1 92: An emplo er #ho contravenes, or ma0es default in compl ing #ith, an of the provisions of this Act or an rule or order made thereunder shall be punishable #ith imprisonment for a term #hich shall not be less than three months but #hich ma extend to one ear, or #ith fine #hich shall not be less than ten thousand rupees but #hich ma extend to t#ent thousand rupees, or #ith both 8 Provided that #here the offence relates to non6pa ment of an gratuit pa able under this Act, the emplo er shall be punishable #ith imprisonment for a term #hich shall not be less than six months but #hich ma extend to t#o ears unless the court tr ing the offence, for reasons to be recorded b it in #riting, is

of opinion that a lesser term of imprisonment or the imposition of a fine #ould meet the ends of @ustice1

1+. EXEMPTION O! EMPLO%ER !ROM LIABILIT% IN CERTAIN CASES. Bhere an emplo er is charged #ith an offence punishable under this Act, he shall be entitled, upon complaint dul made b him and on giving to the complainant not less than three clear da sD notice in #riting of his intention to do so, to have an other person #hom he charges as the actual offender brought before the court at the time appointed for hearing the charge= and if, after the commission of the offence has been proved, the emplo er proves to the satisfaction of the court 6 9a: that he has used due diligence to enforce the execution of this Act, and 9b: that the said other person committed the offence in >uestion #ithout his 0no#ledge, consent or connivance, that other person shall be convicted of the offence and shall be liable to the li0e punishment as if he #ere the emplo er and the emplo er shall be discharged from an liabilit under this Act in respect of such offence 8 Provided that in see0ing to prove as aforesaid, the emplo er ma be examined on oath and his evidence and that of an #itness #hom he calls in his support shall be sub@ect to cross6examination on behalf of the person he charges as the actual offender and b the prosecutor 8 Provided further that, if the person charged as the actual offender b the emplo er cannot be brought before the court at the time appointed for hearing the charge, the court shall ad@ourn the hearing from time to time for a period not exceeding three months and if b the end of the said period the person charged as the actual offender cannot still be brought before the court, the court shall proceed to hear the charge against the emplo er and shall, if the offence be proved, convict the emplo er1 11. CO$NI,ANCE O! O!!ENCES. 91: %o court shall ta0e cogni.ance of an offence punishable under this Act save on a complaint made b or under the authorit of the appropriate 'overnment 8 Provided that #here the amount of gratuit has not been paid, or recovered, #ithin six months from the expir of the prescribed time, the appropriate 'overnment shall authorise the controlling authorit to ma0e a complaint against the emplo er, #hereupon the controlling authorit shall, #ithin fifteen da s from the date of such authorisation, ma0e such complaint to a Aagistrate having @urisdiction to tr the offence1 92: %o court inferior to that of a Aetropolitan Aagistrate or a ;udicial Aagistrate of the first class shall tr an offence punishable under this Act 12. PROTECTION O! ACTION TA-EN IN $OOD !AITH. %o suit or other legal proceeding shall lie against the controlling authorit or an other person in respect of an thing #hich is in good faith done or intended to be done under this Act or an rule or order made thereunder1

13. PROTECTION O! $RAT"IT%. %o gratuit pa able under this Act and no gratuit pa able to an emplo ee emplo ed in an establishment, factor , mine, oilfield, plantation, port, rail#a compan or shop exempted under section " shall be liable to attachment in execution of an decree or order of an civil, revenue or criminal court1 1&. ACT TO O#ERRIDE OTHER ENACTMENTS, ETC. 5he provisions of this Act or an rule made thereunder shall have effect not#ithstanding an thing inconsistent there#ith contained in an enactment other than this Act or in an instrument or contract having effect b virtue of an enactment other than this Act1 1'. PO(ER TO MA-E R"LES. 91: 5he appropriate 'overnment ma , b notification ma0e rules for the purpose of carr ing out the provisions of this Act1 92: Ever rule made b the Central 'overnment under this Act shall be laid, as soon as ma be after it is made, before each Eouse of Parliament #hile it is in session, for a total period of thirt da s #hich ma be comprised in one session or in t#o or more successive sessions, and if, before the expir of the session immediatel follo#ing the session or the successive sessions aforesaid, both Eouses agree in ma0ing an modification in the rule or both Eouses agree that the rule should not be made, the rule shall, thereafter, have effect onl in such modified form or be of no effect as the case ma be= so, ho#ever, that an such modification or annulment shall be #ithout pre@udice to the validit of an thing previousl done under that rule1