THE EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS

ACT, 1952
• The Employees’ Provident Fund is a social welfare legislation intended to protect the interest of
the workers employed in factories and other establishments. It is implemented by the Employees’
Provident Fund Organisation (EPFO) of India. The Employees’ Provident Fund Bill was passed
by both the Houses of the Parliament and it received the assent of the President on 4th March,
1952. The nomenclature of the Act was changed as “The Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952” (w.e.f 1st August, 1976). Now it stands as THE
EMPLOYEES’ PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952
[EPF AND MP ACT, 1952]
OBJECTIVE OF THE EPF AND MP ACT, 1952
• The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 aims to provide a kind
of social security to the industrial workers. The Act mainly provides retirement or old age
benefits, such as Provident Fund, Superannuation Pension, Invalidation Pension, Family Pension
and Deposit-Linked Insurance
• The Act provides for payment of terminal benefits on the happening of various contingencies
such as retirement, closure, retirement on attainment of the age of superannuation, voluntary
retirement and retirement due to factors which result in incapacity of the employee to work.
Types of schemes under the Act
• Employees’ Provident Fund Scheme, 1952: Employees’ Provident Fund Scheme was set up
under the Act for the purpose of providing a post retirement benefit for the employees or a class
of employees or their legal heirs in case of death, employed under an establishment to which this
Act applies.
• Employees’ Pension Scheme, 1995: Employees’ Pension Scheme was framed under the Act for
the purpose of providing the superannuation pension, retiring pension or permanent total
disablement pension to the employees of any establishment or class of establishments to whom
this Act applies; and widow or widower’s pension, children pension or orphan pension payable
to the beneficiaries of such employees.
• Employees’ Deposit-linked Insurance Scheme, 1976: Employees’ Deposit-linked Insurance
Scheme (EDLI Scheme) was framed under the Act for the purpose of providing insurance
benefits to the employees of an establishment or a class of establishments to whom this Act
applies in case of death while in service.
APPLICABILITY
• Extends to the whole of India
• to every establishment which is a factory engaged in any industry specified in Schedule I and in
which twenty or more persons are employed
• to any other establishment employing twenty or more persons or class of such establishments
which the Central Government may, by notification in the Official Gazette, specify in this behalf
• the Central Government may, after giving not less than two months notice by notification in the
Official Gazette, apply the provisions of this Act to any establishment employing such number of
persons less than twenty as may be specified in the notification
• the Central Provident Fund Commissioner, on an application made to him in this behalf, that the
employer and the majority of employees in relation to any establishment have agreed that the
provisions of this Act should be made applicable to the establishment, he may, by notification in
the Official Gazette, apply the provisions of this Act to that establishment on and from the date
of such agreement or from any subsequent date specified in such agreement
• An establishment to which this Act applies shall continue to be governed by this Act
notwithstanding that the number of persons employed therein at any time falls below twenty
• S-2A. Establishment to include all departments and branches.—where an establishment consists
of different departments or has branches, whether situate in the same place or in different places,
all such departments or branches shall be treated as parts of the same establishment.
• S-3. Power to apply Act to an establishment which has a common provident fund with another
establishment.—Where immediately before this Act becomes applicable to an establishment
there is in existence a provident fund which is common to the employees employed in that
establishment and employees in any other establishment, the Central Government may, by
notification in Official Gazette, direct that the provisions of this Act shall also apply to such
other establishment.
• S-4. Power to add to Schedule I- The Central Government may, by notification in the Official
Gazette, add to Schedule I any other industry in respect of the employees whereof it is of opinion
that a provident fund scheme should be framed under this Act, and thereupon the industry so
added shall be deemed to be an industry specified in Schedule I for the purposes of this Act.
DEFINITIONS
• S-2(a) “appropriate Government” means—
• (i) in relation to an establishment belonging to, or under the control of, the Central Government
or in relation to an establishment connected with a railway company, a major port, a mine or an
oilfield or a controlled industry, or in relation to an establishment having departments or
branches in more than one State, the Central Government; and
• (ii) in relation to any other establishment, the State Government
• S-2(b) “basic wages” means all emoluments which are earned by an employee while on duty or
on leave or on holidays with wages in either case in accordance with the terms of the contract of
employment and which are paid or payable in cash to him, but does not include
• (i) the cash value of any food concession;
• (ii) any dearness allowance (that is to say, all cash payments by whatever name called paid to an
employee on account of a rise in the cost of living), house-rent allowance, overtime allowance,
bonus commission or any other similar allowance payable to the employee in respect of his
employment or of work done in such employment;
• (iii) any presents made by the employer;
• S-2(e) “employer” means—
• (i) in relation to an establishment which is a factory, the owner or occupier of the factory,
including the agent of such owner or occupier, the legal representative of a deceased owner or
occupier and, where a person has been named as a manager of the factory under clause (f) of
sub-section (1) of section 7 of the Factories Act, 1948, the person so named; and
• (ii) in relation to any other establishment, the person who, or the authority which, has the
ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a
manager, managing director or managing agent, such manager, managing director or managing
agent;
• S-2(f) “employee” means any person who is employed for wages in any kind of work, manual or
otherwise, in or in connection with the work of an establishment, and who gets his wages directly
or indirectly from the employer, and includes any person—
• (i) employed by or through a contractor in or in connection with the work of the establishment
• (ii) engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961,
or under the standing orders of the establishment
• S-2(k) “occupier of a factory” means the person who has ultimate control over the affairs of the
factory, and, where the said affairs are entrusted to a managing agent, such agent shall be
deemed to be the occupier of the factory
Employees’ Provident Fund Scheme 1952
• EPF (Employees’ Provident Fund) is a retirement benefits scheme provided by the Employees’
Provident Fund Organization (EPFO). The employee and the employer contribute to the EPF
India scheme on a monthly basis in equal proportions of 12% of the basic salary and dearness
allowance. EPF is a tax-saving instrument that offers relatively higher interest rates on
investments. A part of the employer’s contribution (8.33% out of 12%) is directed towards the
Employees’ Pension Scheme (EPS).
• The interest rate on EPF is reviewed annually. EPF interest rate for FY 2023-24 is 8.25%
• 12% Employer’s contribution includes 3.67% EPF and 8.33% EPS (also known as EPF pension)
• 10% EPF share is valid for the organizations where there are 20 or less than 20 employees
/organizations with losses incurred more than or equal to the net worth (at the end of the
financial year) /organizations declared sick by the Board for Industrial and Financial
Reconstruction
• The total contribution made by the employer is distributed as 8.33% towards the Employees’
Pension Scheme and 3.67% towards the Employees’ Provident Fund.
• All contributions are updated in the EPF member passbook
• The contribution made by the employee goes totally towards the provident fund of the employee.
• Apart from the above-made contributions, an additional 0.5% towards EDLI has to be paid by
the employer.
• Certain administration costs towards EDLI and EPF standing at the rate of 1.1% and 0.01%
respectively also have to be incurred by the employer. This means that the employer has to
contribute a total of 13.61% of the salary towards this scheme.
Employee’s Contribution towards EPF
• In general, the contribution rate for the employee is fixed at 12%. However, the rate is fixed at
10% for the below-mentioned organizations:
• Organizations or firms employing a maximum of 19 workers
• Industries declared as sick industries by the BIFR
• Organizations suffering an annual loss much more as compared to their net value
• Coir, guar gum, beedi, brick and jute industries
• Organizations operating under the wage limit of Rs. 6,500
Employer’s Contribution towards EPF
• The minimum amount of contribution to be made by the employer is set at a rate of 12% of Rs.
15,000 (although they can voluntarily contribute more). This amount equals Rs. 1,800 per month.
It means that both the employer, as well as the employee, have to contribute Rs. 1,800 each per
month towards this scheme. Initially, this amount was set at 12% of Rs. 6,500, which would
equal Rs. 780 to be contributed by both the employer and the employee.
• The contribution from both parties is deposited into the EPFO (Employees’ Provident Fund
Organisation)
• This is a long-term investment fund for the contributors which helps them continue an
independent life after retirement
EPF ELIGIBILITY CRITERIA
• Employees need to become active members of the scheme in order to avail of benefits under this
scheme
• Employees of an organization are directly eligible for availing Provident Fund, insurance
benefits as well as pension benefits since the day they join the organization
• Any organization employing a minimum of 20 workers is liable to give EPF benefits to the
workers
• This scheme was not applicable to employees in Jammu and Kashmir and Ladakh earlier.
However, it is being extended to them as well since 2019.
Employee Pension Scheme 1995
• Employee Pension Scheme 1995, is a type of social security scheme launched by the Employees’
Provident Fund Organisation (EPFO) on 19th November 1995.
• The Employee Pension Scheme (EPS) intends to benefit employees post their retirement. The
EPFO manages the administration and assists employees who have reached 58 years of age to
obtain a pension.
• The EPS benefits stand available for both new and existing EPF members. Here, both the
employee and employer contribute 12% of the employee’s wage, including the basic salary and
DA, to the scheme.
• During every month, the employee's complete contribution is made to the EPF.
Subsequently, 8.33% of the employer’s contribution goes to the EPS, and the
remaining 3.67% goes to the EPF.
• All contributions made in the Employees’ Pension Scheme (EPS) account are to be done by the
employer
• The employer has to make the contribution within 15 days of close of every month
• All applicable contribution cost has to be borne by the employer
• The principal employer has to make the contributions for all employees working for him directly
or under a contractor
• The minimum service period is 10 years to be eligible for availing pension benefits
Pension Benefits under Employees’ Pension Scheme (EPS)
• All eligible members of EPFO can avail pension benefits as per their age from when they start
withdrawing the pension. The pension amount is different in different cases.
• 1) Pension on Retirement at the Age of 58 Years
• A member becomes eligible for pension benefits once he retires at the age of 58 years. However,
it is mandatory for him to provide service for a period of at least 10 years when he turns 58 for
availing pension benefits. An EPS Scheme Certificate is generated which can be used to fill
Form 10D for withdrawing the monthly pension.
• 2) Pension on Leaving Service before Becoming Eligible for Monthly Pension
• In case a member is not able to remain in service for 10 years before attaining the age of 58
years, he can withdraw the complete sum at the age of 58 years by filling Form 10C.
• 3) Pension on Total Disablement during the Service
• A member of the EPFO, who becomes disabled totally and permanently, is entitled to a monthly
pension irrespective of the fact that he has not served the pensionable service period. His
employer has to deposit funds in his EPS account for at least one month to be eligible for the
pension.
• The member becomes eligible for the monthly pension from the date of permanent disablement
and is payable for his lifetime. However, the member may have to undergo a medical
examination to check whether he is unfit for the job that he was doing before becoming disabled.
• 4) Pension for the Family on the Death of the Member
• A member’s family becomes eligible for the pension benefits in the following cases:
• In case of death of the member while in service and the employer has deposited funds in his EPS
account for at least one month
• In case the member has completed 10 years of service and dies before attaining 58 years of age
• In case of death of the member after the commencement of the monthly pension
• Types of Pensions under Employees’ Pension Scheme
• There are different types of pensions under EPS such as pensions for widows, children and
orphans. These pensions provide an income to the family member of the EPF subscriber.
• 1) Widow Pension
• Widow pension or vridha pension is applicable to the widow of the member eligible for a
pension. The pension amount will be payable until the death of the widow or her remarriage. In
case of more than one widow, the pension amount will be payable to the eldest widow.
• As far as the pension amount is concerned, the rules vary between pre-retirement and post-
retirement phases of the member. If the member has retired, the pension amount will be half. “In
case an EPS member who has completed 10 years of service dies after reaching 58 years, the
 spouse would be entitled to a pension equal to 50% of the pension payable to the member on the
date of his death
• However, if the member dies before the retirement age, the spouse is eligible to get the full
pension amount. “In case an EPS member who has completed 10 years of service dies before
reaching 58 years, his or her spouse would be entitled to a pension equal to the member's pension
that would have been admissible if the member had retired on the date of death
• “The minimum amount of widow pension per month is Rs 1,000,”
• 2) Child Pension
• In case of death of the member, monthly children pension is applicable for the surviving children
in the family in addition to the monthly widow pension. The monthly pension will be paid till the
child attains the age of 25 years. The amount payable is 25% of the widow pension and can be
paid to a maximum of two children.
• 3) Orphan Pension
• In case the member dies and has no surviving widow, his children will be entitled to get the
monthly orphan pension of 75% of the value of monthly widow pension. The benefit will be
applicable for two surviving children from oldest to youngest.
• 4) Reduced Pension
• A member of the EPFO can withdraw an early pension if he has completed 10 years of service
and has reached the age of 50 years but is less than 58 years. In this case, the pension amount is
slashed at a rate of 4% for every year the age is less than 58 years.
• In case the member decides to withdraw the monthly reduced pension at the age of 56 years, he
will get the pension at a rate of 92% (100% – 2 x4) of the original pension amount.
EDLI – Employees Deposit Linked Insurance Scheme
• The Employees Deposit Linked Insurance Scheme or EDLI is an insurance cover provided by
the EPFO (Employees Provident Fund Organisation) for private sector salaried employees who
are members of EPFO. The EDLI scheme was launched in 1976. The registered nominee
receives a lump-sum payment in the event of the death of the person insured (employee) during
the period of the service.
Features of Employees Deposit Linked Insurance Scheme
• EDLI applies to all employees with a basic salary under Rs. 15,000/- per month. If the basic
salary goes above Rs. 15,000 per month, the maximum benefit is capped at Rs. 6,00,000/-. With
effect from 28.04.2021, the EPFO has increased the maximum benefit to Rs.7 lakh.
• There is no need for the employees to contribute to EDLI. Their contribution is required only for
EPF.
• There is a bonus of Rs. 1,50,000/- available under the EDLI. With effect from 28.04.2021, the
bonus is increased to Rs.2.5 lakh.
• Any employee who has an EPF account automatically becomes eligible for the EDLI scheme.
• An employer can opt for another group insurance scheme, but the benefits offered must be equal
to or more than those offered under EDLI.
• As per the provisions of the EDLI, the contribution of an employer must be 0.5% of the basic
salary or a maximum of Rs. 75 per employee per month. If there is no other group insurance
scheme, the maximum contribution is capped at Rs. 15,000/- per month.
• For all calculations under EDLI, the dearness allowance must be added to the basic salary.
• The process to be followed by the nominee or claimant to receive the amount under EDLI is as
follows:
• The benefits can be claimed by the nominee specified by the insured person. If no nominee was
registered, then the family members or legal heirs can apply for the same.
• The deceased person should have been an active contributor to the EPF scheme at the time of
his/her death.
• EDLI Form 5 IF has to be duly completed and submitted by the claimant.
• The claim form has to be signed and certified by the employer.
• If there is no employer or the signature of the employer cannot be obtained, the form must be
attested by any of the following:
a) Bank manager (in whose branch the account was maintained)
b) Local MP or MLA
c) Gazetted Officer
d) Magistrate
e) Member/Chairman/Secretary of Local Municipal Board
f) Post Master or Sub-Postmaster
g) Member of the regional committee of EPF or CBT [Central Board of Trustees]
• The claimant must submit all the documents along with the completed form with the regional
EPF Commissioner’s Office for processing of the claim.
• The claimant can also submit Form 20 (for EPF withdrawal claim) as well as Form 10C/D to
claim all the benefits under the three schemes, EPF, EPS and EDLI)
• Any additional documents required must be furnished at the earliest to process the claim.
• Once all the documents are provided and the claim is accepted, the EPF commissioner must
settle the claim within 30 days from the receipt of the claim. Otherwise, the claimant is entitled
to interest @12% p.a. Till the date of actual disbursal.
Payment of Gratuity Act, 1972
The Act is applicable, to factories, mines, oil fields, plantations, ports, railways, motor transport
undertakings, companies, and to shops and other establishments, Employing 10 or more
workmen. The Act provides for payment of gratuity at the rate of 15 days wage s for each
completed year of service subject to a maximum of Rs. 20 lakh. In the case of seasonal
establishment, gratuity is payable at the rate of seven days wages for each season. The Act does
not affect the right of an employee to receive better terms of gratuity under any award or
agreement or contract with the employer. Central Government is the Appropriate Government in
relation to an establishment belonging to or under the control of the Central Government or
having branches in more than state or an establishment of a factory belonging to or under the
control of Central Government or of a major port, oilfield railway or mine.
 Meaning of Gratuity
A gratuity is a form of financial compensation given to employees by an organisation to express
their gratitude for the work done. It is a form of acknowledgement of their efforts and
contributions to the company’s growth and development. The amount is usually calculated based
on the employee’s service tenure and last drawn salary.
Gratuity is usually given to employees who have worked for the company for five years
minimum. It serves as a morale booster for employees, recognising their hard work and
dedication towards the company.
Key provisions of the Payment of Gratuity Act, 1972
 Section 1 of the Act states that the Act extends to the whole of India except in cases of
plantations and ports, where the state of Jammu and Kashmir was exempted before 2019, where
it was amended to extend to the whole of India.
Further, the Act shall be applicable to the following:
1. Every manufacturing unit, mine, oil field, plantation, port, and railway firm;
2. Every business, as defined by any law currently in effect with regard to businesses and premises
in a State, where ten or more people are employed or were employed on any day during the
previous 12 months;
3. Any other businesses or groups of businesses where ten or more people are employed or were
employed on any day during the previous year, as the Central Government may designate in a
notification.
 An employee is defined in Section 2(e) as any person who is paid wages in an establishment, as
defined in Section 1(3) of the Payment of Gratuity Act, 1972, to perform any manual,
supervisory, technical, or clerical work, regardless of whether the terms of the employment are
express or implied and regardless of whether the employee holds a managerial or administrative
position. But the definition tends to exclude any such individual who occupies a position with the
federal or state governments and is subject to another Act or any guidelines governing the
payment of gratuities.
 Continuous service means uninterrupted service during the employment period. This includes
leaving due to sickness, accident, layoff, strike, etc. If the interruption is for six months or one
year, then the employee is not entitled to gratuity benefits. They should have worked for at least
190 days in a mine or coalfield-like establishment (where the duration of work is only 6 months)
and 240 days in other areas.
 The controlling authority shall be appointed by the appropriate government for the proper
administration of this Act as per Section 3. The government may also appoint different
controlling authorities for different areas.
 According to Section 4 of the Act, an employee is entitled to the payment of gratuity if they have
rendered five years of continuous service upon their superannuation, retirement, resignation,
disablement, or death. However, five years of continuous service are not mandatory in cases
where the termination is due to death or disability. A retired person is also entitled to a gratuity
amount along with his pension. The amount of gratuity shall not exceed Rs. 20 Lakhs.
 A gratuity must be paid to an employee upon termination of employment if he or she has
provided continuous service for five years or more, according to Section 4(1) of the Payment of
Gratuity Act of 1972.
(a) It must be upon his retirement,[ the gratuity shall be paid to the employee himself. or
(b) Upon his resignation or retirement, or
(c) Upon his demise[any gratuity due to him must be paid to his nominee or, if no nominee has
been made, to his heirs] or disability brought on by an accident or illness.
 Threshold limit of gratuity- as of March 29, 2018, the gratuity limit for individuals covered by
the Payment of Gratuity Act, 1972, has risen from 10 lacs to 20 lacs through the notification S.O.
1420 (E) dated March 29, 2018
 Forfeiture of gratuity
Section 4(6) lays down two situations in which an individual’s gratuity can be forfeited:
1. If there has been a termination of service for any act, willful omission or any negligent act by the
individual which caused damage to the property of the employer, the gratuity shall be forfeited
up to the extend of the damage.
2. There can be a partial or whole forfeiture of gratuity for riotous and disorderly behaviour, any
other act of violence committed by him, or any act of moral turpitude committed by him while
acting in the course of his employment.
 Compulsory insurance
Section 4A of the Act provides compulsory insurance to every employer other than those
belonging to the central government or state government through the Life Insurance
Corporation or any other company. However, those employers are exempted from this provision
who have an established and registered gratuity fund in their company. The government may
also make rules for the enforcement of this section as and when necessary. Any violation of this
provision by anyone may lead to a penalty.
 Power to exempt
Section 5 of the Act provides the power to exempt the appropriate government by
notification from having to declare any establishment—a factory, mine, oilfield, plantation, port,
railway company, or shop—exempt from gratuity if the government is of the opinion that the
establishment has favourable benefits, not less than what this Act has been providing. The same
law applies to any employee or class of employees.
 A nomination under Section 6 must be submitted by an employee within 30 days of the end of
their first year of employment in order to be considered under the Payment of Gratuity Act,
1972. This would imply that the statute mandates that an employee submit a nomination within
30 days after completing a year of service. In reality, though, this is not the case. In reality,
employers demand that new recruits submit the nomination form when they first join the
company. As a result, you can consult your employer if you are unsure about submitting the
nomination form.
 Section 7 of the Act, lays down the rules for the determination of the amount of gratuity. The
person entitled to receive the gratuity amount shall send an application in writing to the
 employer. The employer shall calculate the gratuity amount and provide notice in writing to the
concerned employee and the controlling authority. The payment should be made within 30 days
from the date it is due to the employee. Failure to pay within the prescribed limit will result in
the payment of simple interest. However, if the delayed payment is because of the employee,
then the employer is not entitled to pay the simple interest.
 Calculation of gratuity
The elements that are used to determine the gratuity amount are listed below. The amount also
depends on how long an individual has worked for the organisation and when he was last paid.
Gratuity = Number of years x last drawn salary x15/26
For instance, if XYZ has been employed by a company for 20 years and received Rs. 25,000 as
his most recent basic plus DA amount,
For XYZ, the gratuity amount is equal to 20 x 25,000 x 15/26, or Rs. 2,88,461.54.
 The government may appoint an inspector or inspectors who are deemed to be public servants
under Section 21 of the Indian Penal Code for the purpose of ascertaining whether any of the
provisions of this Act are being violated or not complied with and taking the necessary measures
to ensure the fulfilment of all the provisions of this Act.
 Two additional provisions, Section 7-A and Section 7-B, dealing with the appointment of
inspectors for the purposes of the Act and their powers, have been added to the original Act by
the Payment of Gratuity (Amendment) Act, 1984.
 The appointed inspector has certain powers to ascertain whether the provisions of the Act are
well complied with. These powers are as follows:
1. The inspector can demand that an employer provide whatever information that he may deem
necessary.
2. He can enter and inspect the premises that come under the Act to examine the records or
necessary documents.
3. He also has a right to inspect the employees on the premises.
4. If he believes that any offence has been committed, then he may also make copies of the
necessary documents that he examined.
5. The individuals are bound to furnish the relevant documents to the inspectors as per the relevant
laws such as Sections 175 and 176 of the Indian Penal Code and Section 94 of the Code of
Criminal Procedure, 1973.
 Recovery of Gratuity
If the employer delays the payment of the gratuity amount under the prescribed time limit, then
the controlling authority shall issue the certificate to the collector on behalf of the aggrieved
party and recover the amount, including the compound interest decided by the central
government, and pay the same to the person. However, these provisions are subject to two
conditions, as mentioned in Section 8:
The controlling authority should give the employer a reasonable opportunity to show the cause of
such an Act.
The amount of interest to be paid should not exceed the amount of gratuity under this Act.
 Penalties under the Payment of Gratuity Act
Violation of the provisions of the Act shall entail certain penalties, as stated in Section 9. They
are:
1. To avoid any payment, if someone makes a false representation or false statement, it shall be
punishable with imprisonment for 6 months or a fine up to Rs. 10,000 or both.
2. Failure to comply with the provisions of this Act shall be punishable by a minimum of 3 months,
which may extend up to 1 year, or a fine of Rs. 10,000, which may extend up to Rs. 20,000.
3. Non-payment of gratuity under the Act will lead to an offence, and the employer shall be
punishable with imprisonment for at least 6 months, which may extend up to 2 years unless the
court provides a sufficient reason for less payment.
 Exemption of employer from liability
An employer, if charged with any offence punishable under this Act, shall be exempt from any
liability under Section 10 if he provides sufficient reasons for his conduct of the act or some
other person doing that act without his knowledge. The other person, if found guilty, will be
charged with the same punishment as an employer will be.
The employer has to prove the following to the court in order to get exempted from liability:
1. To prove that the other person committed the alleged offence without his knowledge, agreement,
or connivance, and
2. To prove that he exercised due diligence in enforcing the execution of this Act.
 Cognizance of offences as per the Payment of Gratuity Act
As per Section 11, the court cannot take cognizance of the offences punishable under this Act
unless the amount of gratuity to be paid has not been paid or recovered within 6 months from the
expiration of the prescribed time. In such cases, the government shall authorise the controlling
authority to make a complaint where the authority has to make a complaint to the metropolitan
magistrate or judicial magistrate of first class within 15 days of the authorisation.
 Protection of action taken in good faith
The controlling authority shall not be subject to any legal proceeding if the acts done by him
were done in good faith or under any rule or order under Section 12 of the Act.
 Protection of gratuity
As per Section 13, no exempted gratuity that is payable under this Act to the employee by the
employer shall be liable to the attachment of any order or decree by any court.
 Power to make rules
The power to make rules under Section 14 of the Payment of Gratuity Act, 1927, shall rest with
the appropriate government and be declared by notification.