The Act provides gGIFTSh for employees who had worked for more than five years at the time of leaving the service. The condition of five years service is not applicable in case of employeefs death. In case of death, gratuity is paid to persons nominated by employee or if no nomination is made, it is paid to heirs.

It is applicable to almost all industries/establishments employing ten or more persons.

It is paid @ 15 days salary after every year of service. Maximum 20 months of salary can be paid with limit up to Rs. 3,50,000/-. In seasonal industry it is paid @ 7 days salary after every year of service.

Section-4 (6) of this Act deals with conditions regarding forfeiture of gratuity of an employee.

Employers has to obtain compulsory insurance from Life Corporation of India to pay gratuity or to establish any other fund for its payment as per the provision of this Act.