 Depends on two factor :

1. Firstly he should be employed in an establishment

to which the act applies according to section 1 (3)
a) Every factory, mine, oilfield, plantation, port and
railway company;
b) Every or establishment within the meaning of law, in
relation to shops and establishment in a state, in which
more people are employed, were employed or
employed on any day of the preceding 12 months;
c) As per the notification of Central Government in this
behalf
2. Secondly he should be employee under section 2(e)

Employee means any person (other than apprentice)

employed on wages in an establishment to do any
skilled, semiskilled, unskilled, manual or supervisory,
technical or clerical work.
 According to Section 4(1) of the
Payment of Gratuity Act, 1972, gratuity is
paid after termination of employee after
rendering continuous services not less
than 5 years :
a) On his superannuation or
b) On his retirement or resignation or
c) On his death or disablement due to
accident or disease.
Monthly rated employee :
Gratuity = Last drawn salary* 15days / 26 * No
of years of service.
Piece-rated employee :
Last drawn wages*15 / 26 * completed years of
service (incl. a part of year in excess of 6
months)
Seasonal Establishment :
Such an employee shall be paid gratuity at the
rate of 7 days wages for each season
Application shall be made to the employer in
writing within 30 days from the date gratuity
becomes payable.

Ifthe date of superannuation and retirement of the

employee is known in advance, the employee may
apply to the employer before 30 days of date of
superannuation or retirement.
 As soon as the gratuity becomes payable the
employer shall determine the amount of gratuity
payable.
 The employer shall give notice specifying the
amount of gratuity to controlling authority and
employee.

Note: The employer has to determine the amt of

gratuity and give notice irrespective of the fact
whether an application for payment of gratuity has
been made or not
The gratuity if an employee, whose services have
been terminated for any act, wilful omission or
negligence causing any damage or loss to, or
destruction of, property belonging to the employer,
shall be forfeited to the extent of the damage or loss
so caused.
The gratuity payable to an employee may be wholly
or partially forfeited
If the services of such employee have been
terminated for the riotous or disorderly conduct or any
other act of violence on his part, or
If the services of such employee have been
terminated for any act which constitutes an offence
involving moral turpitude, provided that such offence
is committed by him in the course of his employment.