Gratuity Act, 1972

Gratuity is defined as a benefit given by the employer to the employee for rendering services continuously for five years or more. It is a mandatory and monetary benefit usually given at the time of employee separation from organization or retirement. But there are certain rules which make an employee eligible to receive gratuity.The main purpose and concept of gratuity is to help the workman after the retirement, whether the retirement is a result of the rules of superannuation or physical disability or impairment of the vital part of the body. Gratuity is the amount which is not connected with any consideration and has to be considered as something given freely for the service the employee has rendered to the organization for more than 5 years.