Directorate of distance education master of business administration

The Payment of Gratuity Act, 1972 
 
The object of this Act is to provide economic assistance on the 
termination of an employee.    
The Act is applicable to the employees employed in factories, 
mines, oil fields, ports, railway, companies, shops or other establishments 
employing 10 or more persons. Under this Act, on completion of 5 years 
of service, the employees are entitled to gratuity payable at the rate of 15 
days wages for each completed year of service subject to a maximum of 
Rs. 3,50,000 with effect from September 1997. 

---

78