Amendment status not verified — confirm the current text below against the official source.
(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 dis- ablement means such disablement as permanently incapa- citates 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 employ- ment 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. Nomina- tion. (b) any serious act of violence on the part of the em- ployee ; 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 em- ployee 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.