Section 5 — Power to exempt.

5. Power to exempt.—1[(1)] The appropriate Government may, by notification, and subject to such 

conditions as may be specified in the notification, exempt any establishment, factory, mine, oilfield, 

plantation, port, railway company or shop to which this Act applies from the operation of the provisions 

of this Act if, in the opinion of the appropriate Government, the employees in such establishment, factory, 

mine, oilfield, plantation, port, railway company or shop are in receipt of gratuity or pensionary benefits 

not less favourable than the benefits conferred under this Act.  

2[(2) The appropriate Government may, by notification and subject to such conditions as may be 

specified in the notification, exempt any employee or class of employees employed in any establishment, 

factory, mine, oilfield, plantation, port, railway company or shop to which this Act applies from the 

operation of the provisions of this Act, if, in the opinion of the appropriate Government, such employee or 

class of employees are in receipt of gratuity or pensionary benefits not less favourable than the benefits 

conferred under this Act.]  

3[(3) A notification issued under sub-section (1) or sub-section (2) may be issued retrospectively a 

date not earlier than the date of commencement of this Act, but no such notification shall be issued so as 

to prejudicially affect the interests of any person.]