Section 1 — Short title, extent, application and commencement.

1. Short title, extent, application and commencement.—(1) This Act may be called the Payment of 

Gratuity Act, 1972. 

(2) It extends to the whole of India: 

Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu 

and Kashmir*. 

(3) It shall apply to— 

(a) every factory, mine, oilfield, plantation, port and railway company; 

(b) every shop or establishment within the meaning of any law for the time being in force in 

relation to shops and establishments in a State, in which ten or more persons are employed, or were 

employed, on any day of the preceding twelve months; 

(c) such other establishments or class of establishments, in which ten or more employees are 

employed, or were employed, on any day of the preceding twelve months, as the Central Government 

may, by notification, specify in this behalf.  

1[(3A) A shop or establishment to which this Act has become applicable shall continue to be governed 

by this Act notwithstanding that the number of persons employed therein at any time after it has become 

so applicable falls below ten.] 

(4) It shall come into force on such date2 as the Central Government may, by notification, appoint.