Clarification: No Retrospective application of Payment of Gratuity (Amendment) Act 2018

Document created by Deepak Arora on Jun 1, 2018
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The Ministry of Labour and Employment has recently published a brief on the application of Payment of Gratuity (Amendment) Act 2018. As per brief, the Government has clarified that there will be no retrospective application of the said amendment as it will lead to administrative challenges and employers may not have sufficient liquidity to meet the arrears liabilities.

 

The brief was published in response to the representations made by various stakeholders to Government demanding amendment should be made effective from 1st June 2016 instead of 29th March 2018 to be at par with Central Government employees.   

 

A copy of the brief can be accessed from here: https://labour.gov.in/sites/default/files/Gratuity_2.pdf 

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