Section 13 of Payment of Gratuity Act 1972 - Protection of Gratuity

Section 13 of the Payment of Gratuity Act, 1972 protected gratuity from attachment in execution of a decree or order of a civil, revenue or criminal court. The protection extended both to gratuity payable under the Act and to gratuity payable to employees of establishments exempted under Section 5.

Current legal position: The Code on Social Security, 2020 was brought into force for the relevant social security provisions from 21 November 2025. The gratuity scheme is now principally contained in Chapter V, Sections 53 to 58 of the Code. The former Section 13 remains important for gratuity rights and proceedings governed by the earlier law and the repeal and savings provisions.

Text of Section 13 - Protection of Gratuity

13. Protection of gratuity. No gratuity payable under this Act and no gratuity payable to an employee employed in any establishment, factory, mine, oilfield, plantation, port, railway company or shop exempted under section 5 shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.

Meaning of Protection from Attachment

Section 13 created a statutory bar against attaching protected gratuity in execution of a court decree or order. In this context, attachment refers to the legal process by which property or money of a judgment debtor may be seized, restrained or subjected to execution for satisfaction of a decree or order.

The section therefore treated gratuity as a protected terminal employment benefit while it fell within the statutory protection. A creditor seeking execution of a decree or order could not attach gratuity covered by Section 13 merely as a means of recovering the debt.

Gratuity Covered by Section 13

  • Gratuity payable under the Payment of Gratuity Act, 1972 was protected.
  • The protection also covered gratuity payable to an employee of an establishment exempted under Section 5.
  • The listed exempted establishments included factories, mines, oilfields, plantations, ports, railway companies and shops.
  • The prohibition applied to attachment in execution of a decree or order.
  • The statutory wording covered civil, revenue and criminal courts.

Section 5 and Exempted Establishments

Section 5 of the former Act empowered the appropriate Government, subject to the statutory conditions, to exempt an establishment, factory, mine, oilfield, plantation, port, railway company or shop where employees were in receipt of gratuity or pensionary benefits not less favourable than the benefits conferred under the Act. Section 13 ensured that gratuity payable to employees of such exempted establishments also received the specified protection against attachment.

Read Section 5 - Power to Exempt

Current Gratuity Framework Under the Code on Social Security 2020

Chapter V of the Code on Social Security, 2020 now contains the central gratuity provisions. Section 53 governs payment of gratuity, Section 54 continuous service, Section 55 nomination, Section 56 determination of gratuity, Section 57 compulsory insurance and Section 58 the competent authority.

Section 53 provides the circumstances in which gratuity becomes payable and the basis of calculation, subject to its conditions and exceptions. Section 56 requires the employer to determine and arrange payment of gratuity and provides the mechanism for disputes and appeals.

Important: Chapter V of the Code on Social Security, 2020 does not reproduce the former Section 13 as a separately numbered provision titled "Protection of gratuity." Questions concerning attachment of gratuity after commencement of the Code should therefore be examined under the current Code, applicable procedural law, rules, notifications and the facts of the particular case rather than assuming that the former Section 13 automatically governs every current claim.

When Former Section 13 May Still Matter

Section 164 of the Code on Social Security contains repeal and savings provisions. Accordingly, the former Payment of Gratuity Act and actions taken under it may remain relevant when determining rights, liabilities, proceedings or other matters arising under the earlier statutory regime. The date on which the gratuity right accrued and the nature of the proceeding can therefore be material.

Related Provisions

See also Section 4 - Payment of gratuity, Section 5 - Power to exempt, Section 7 - Determination of gratuity, Section 8 - Recovery of gratuity, Section 13A - Validation of payment of gratuity and Section 14 - Overriding effect.

Official Legal Resources

For current authoritative material, refer to the Ministry of Labour and Employment - Code on Social Security, 2020, the official Code text, the 21 November 2025 commencement notification, and the Ministry's Labour Codes rules and notifications page.

This article provides general statutory information. The legal treatment of gratuity in execution proceedings may depend on the applicable law, date of accrual, nature of the gratuity benefit and the facts of the proceeding.