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Payment of Gratuity (Amendment) act, 2009 – amendment in section 2 and insertion of section 13A

An Act to further amend the Payment of Gratuity Act, 1972.

Be it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:—

 Short title and commencement

1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2009.

(2) It shall be deemed to have come into force on the 3rd day of April, 1997.

2. In the Payment of Gratuity Act, 1972 (39 of 1972) (hereinafter referred to as ‘the principal Act’), in section 2, for clause (e), the following clause shall be substituted, namely:—

‘(e) “employee” means any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop or other establishment to which this Act applies, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity;’.

3. After section 13 of the principal Act, the following section shall be inserted, namely:—

“13A. Validation of payment of gratuity – Notwithstanding anything contained in any judgment, decree or order of any court, for the period commencing on and from the 3rd day of April, 1997 and ending on the day on which the Payment of Gratuity (Amendment) Act, 2009, receives the assent of the President, the gratuity shall be payable to an employee in pursuance of the notification of the Government of India in the Ministry of Labour and Employment vide number S.O. 1080, dated the 3rd day of April, 1997 and the said notification shall be valid and shall be deemed always to have been valid as if the Payment of Gratuity (Amendment) Act, 2009 had been in force at all material times and the gratuity shall be payable accordingly:

Provided that nothing contained in this section shall extend, or be construed to extend, to affect any person with any punishment or penalty whatsoever by reason of the non-payment by him of the gratuity during the period specified in this section which shall become due in pursuance of the said notification.”.

Download Payment of Gratuity Amendment Bill 2010

Related Post:-

1. Cabinet approved amendment to the Gratuity Act to raise the ceiling from Rs 3.5 lakh to Rs 10 lakh

2. Lok Sabha passes bill to hike gratuity ceiling to Rs. 10 lakh from Rs. 3.50 Lakh

3. Gratuity Limit increased to 10 Lakh as per Income Tax Act and Gratuity Act in Rajya Sabha

4. Payment of Gratuity (Amendment) Act, 2009 – Amendment in section 2 and insertion of section 13A, Change in definition of employee

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126 Comments

  1. S.K.Gupta says:

    I also retired from NTPC Ltd. in July 2009. Income tax deducted on enhanced portion is on 6.5 lac, now’what I have to do for refund. To whom to contact.

  2. Madhava kumar says:

    Please let me know the gratuity amount payable to me on retirement date 29.4.2009, after serving for over 30 years in the same company. Is it 10 lakhs or 3 lakhs.

  3. Sanjeev Khawasia says:

    Please confirm i was worked with one Limited Company from 5-10-11 to 08-06-16 i.e. 4 Years 8 Months 3 Days. Can i eligible for Gratuity.

  4. Hem Pant says:

    Dear Jaidip,
    I also underwent the same prob. After retirement from UP State Bridge Corporation on feb 2010, i got only 3.5 lakh gratuity whereas it should have been10 lakhs as per new rule from 1 jan 2006..

    Please let me know if you got any success in your matter.

  5. PD Nanda says:

    I retired from service of State Govt. PSU on 30.11.2009. For the purpose of exemption of income tax on enhanced gratuity of Rs.10 lakh only those who retired after 24.5.2010 qualify for the same and those who retired prior to 24.5.2010 are to pay income tax on the amount exceeding Rs.3.5 lakh. This being against the practice which was followed in the past, I had challenged the decision in the Hon’ble High Court of HP and directions were given to the Ministry of Finance on 29.7.2010 to pass order on the representation within 3 months. To this effect, an interim reply was given to me by the MoF on 24.12.2010 that final decision shall be taken shortly after the opinion of Ministry of Law is received. Till date no order has been passed and matter is being tossed between Ministry of Law & Justice and Ministry of Finance. As per information obtained under RTI, Ministry of Law vide Dy.No. 80/2011/Adv-B dated 17/2/2011 has asked the MoF to send complete file. Even the PMO has directed the MoF to decide the matter vide letter dated 31/7/2014 but still no decision. I feel that all retirees being victim of this discriminatory decision should decide for taking legal recourse jointly by filing writ petition in the Hon’ble Supreme Court. Interested persons may please give their views on my e-mail address [email protected] so that by making contribution of Rs.2000(depending upon number) a competent Senior Advocate, is engaged jointly as one or two persons cannot bear the fee of good Advocate. This work can be entrusted to a group of 2-3 persons stationed at Delhi. P.D.Nanda, Shimla.

  6. V. Rama Rao says:

    13-4-2015.

    Shri Banerjee,

    I was an officer-Gr1 of 1976 batch of SBI. Stupidly I had opposed some very illegal orders of my then AGM and recommended strong action including police complaint against some borrowers to whom I was directed to give excess drawings, when their collective loans amounted to Rs.25 lakhs. I was shunted out of the branch and the pals of AGM got their loan limits raised many times in next 7 years and the final loss was close to Rs.5 crores. NO action was taken against the buccaneering AGM, he was sponsored for promotions by the same borrowers and retired as DGM from SBI.
    I was subjected to false charges, CBI case etc. I won CBI case in CBI court as well as the appeal in Hon’ble High Court. But the bank had a trick up their sleeve and denied me bank records and defense witnesses and ‘removed me from service’ in 1996.

    I had asked for payment of gratuity & PF immediately after my appeal was rejected. But the bank did not pay my terminal benefits and withheld them till 2013 when Hon’ble High Court of A.P. ordered the bank to pay my terminal benefits as per eligibility.

    Bank paid me Rs.100000/ gratuity & Rs.225,000 PF without interest although I had demanded same.

    Now I have lodged a complaint with Dy. Commissioner of labour, Hyderabad against their actions invoking sec. 9 of Payment of Gratuity Act.
    The following will explain the correct position relating to the high handed acts of SBI in respect of payment of terminal benefits like gratuity, PF & Pension:

    “The Hon’ble Supreme Court has ordered in Sudhir Chandra Sarkar Vs TISCO Ltd & Others on 27-03-1984, the Hon’ble High Court of Gujarat has ordered payment of interest @ 18% that terminal benefits not paid within 30 days after they fell due, must bear interest at 15% p.a. In recent times where payments of terminal benefits are delayed by official apathy and also to recover the same from the erring officials who are culpable for the delay in payments due to ex-colleagues, in C.J Thakkar Vs State of Gujarat & others on 8-10-2013 and also in Jayantilal A. Gandhi Vs State of Gujarat on11-04-2001. The Hon’ble High Court of Rajasthan in L.D Gupta Vs State of Rajasthan on 16-04-2001 ordered payment of interest @18%. ”

    No matter how many times you make representations, SBI will not act fairly.
    You have to ‘take legal action and followup yourself’. Or you will be short-changed.

    Fortunately, I had a very good young lawyer and Hon’ble High Court of A.P. ordered payment Pension to me following similar orders by Hon’ble Supreme Court & other High Courts.
    SBI has appealed the decision! The issue has been in court from 1998!

    So you will do well by helping yourself, and helping other sufferers.
    I have collected vast amount of case laws on service law issues and I can forward relevant case laws for your use in case you want to fight for your rights.

    Truly,
    Ramarao Velagapudi

  7. gayathri says:

    Dear sirs, My brother while working in tn govt municipal office expired as on 13.05.2012. he was worked just two years only. He was joined his duty as on 01.10.2010 and expired within two years. he was unmarried and his legal her myself only. My question is, am i eligible to receive any death gratuity or not. please reply to the same e-mail id.

    thanks & regards,
    k.gayathri.

  8. B S BANERJEE says:

    I was retired from state bank of India on 28/02/2007.I received gratuity only rs 3.5 lakhs and thereby became a victim of wrong policy with regard gratuity payment of the management and the government as well.I could not understand as to how this issue was continued for such a long period.I was given to understand that the fellow retire officers/officials of Kerala state has filled a petition in the Kerala high court and the petition was dismissed by the high court taking a plea that the matter was not taken to the bank management first and therefore they couldn’t instruct to the bank management for the payment of the gratuity.Now I think,It would be fitness of things to take the matter afresh systematically.If anybody (colleague of sbi)concur with my views, may get in touch with me at my [email protected] us join hands and unite to short out this anomaly created by government and management.The course of action,in my opinion is to consult a reputed advocate for presenting the matter before the management. On receipt of the reply of the management,the matter will be taken to the highest court of law for justice.

  9. Jaspal Rai says:

    Dear Friends
    Kerala High Court gratuity Case has since been disposed off.Proceedings closed on 19th November while decision order issued on 28th November.It is rather no judgement but tactfully avoidance to deliver any judgement. The order says that Court can not direct the Bank to pay gratuity retrospectively wef 01.0106 but affected employees should go for negotiations with the management for enhanced benefits. Little did the Judge realise that aggrived employees approached the Court when negotiations failed with the Management.
    A most non sense judgement a twist of justice and clear flouting of Rights To equality and parity enshrined in the Constitution.

  10. Jaydipsinh Rathod says:

    Dear friends,
    Again i request to all friends , if any case regarding increase in gratuity from 3.5 to 10 lakhs in any state of India found to be in court matter as a win position. pl give response bcoz my father was died in between jan 2006 to may 2010 from gujarat govt sector & i need any proof related to this to get increase gratuity amount….
    waiting for reply

  11. karanji Raghavendra says:

    I worked in Carmel High School B’nagar Bangalore79 as clerk cum typist for 28 years but the school management has not paid single paise as gratuity till date. Case is before labour court

  12. karanji Raghavendra says:

    I worked in Carmel High School B’nagar Bangalore79 as clerk cum typist for 28 years from 1-6-1984 to 31-3-2012. The Carmel High school management has not given single paise as gratuity. The case is before the Labour Court.

  13. Jaydipsinh Rathod says:

    All respected,
    please guide me
    my father was working in govt sector and died on Feb 2009 before retirement on year 2013 . Then our family got 3.5 gratuity amount , but my quiery is whether we got 3.5 lakhs or 10 lakhs gratuity if gazzete published taht now this amount should be 10 lakhs …….i
    if any have any information related to this matter ..
    pl reply me as early as possible

  14. P.SIVAKUMAR says:

    Dear Sir,

    I am working in a Society Registered under Societies Act. As I am a single employee worked for more than 9 years, please let me know whether I am eligible for Gratuity.

    Regards

    P.Sivakumar

  15. v chandraiah says:

    kerala high court gratuity 2006 case double bench results please give any other matter by v chandraiah rtd staff sbi ongole 523001

  16. S. SIVARAMAKRISHNAN says:

    ALL THOSE CONCERNED IN PASSING THE AMENDED PAYMENT OF GRATUITY ACT 2010 AND DIVISIVE IMPLEMENTATION OF THE SAME FROM 1ST JANUARY 2006 AND 24TH MAY 2010, DESPITE INNUMERABLE REPRESENTATIONS FROM THE AFFECTED AND AGGRIEVED RETIREES FROM BANKING AND INSURANCE SECTORS AND PRIVATE SECTORS, HAVE NOT BOTHERED TO LOOK AT THE GRAVITY OF THE GRIEVANCE AND ALLOWED THE GRIEVANCE DIE A NATURAL DEATH. GOD SAVE THE MOTHER LAND AND ITS CITIZENS FROM THE ATROCIOUS POLITICIANS.

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