Section 15 of Payment of Gratuity Act 1972 - Power to Make Rules
Section 15 of the Payment of Gratuity Act, 1972 authorised the appropriate Government to make rules by notification for carrying out the provisions of the Act. It also prescribed parliamentary scrutiny for rules made by the Central Government.
Text of Section 15 - Power to Make Rules
15. (1) The appropriate Government may, by notification make rules for the purpose of carrying out the provisions of this Act.
(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall, thereafter, have effect only in such modified form or be of no effect as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
Meaning of Section 15
Section 15 was a delegated legislation provision. Parliament enacted the principal statutory framework in the Payment of Gratuity Act, while authorising the appropriate Government to prescribe procedural and administrative details through rules consistent with the Act.
A notification is an official instrument published by the competent Government in exercise of statutory authority. Rules made under a parent Act are subordinate legislation: they operate under the authority of the Act and cannot validly override the Act itself.
Meaning of Appropriate Government
Under Section 2(a) of the former Act, the expression "appropriate Government" determined whether the Central Government or State Government exercised statutory functions for a particular establishment. Broadly, the Central Government was the appropriate Government for specified establishments and undertakings falling within the statutory categories, while the State Government was the appropriate Government in other cases covered by the Act.
Parliamentary Control Over Central Rules
Section 15(2) required every rule made by the Central Government under the Act to be laid before each House of Parliament for a total period of thirty days. That period could fall within one session or two or more successive sessions.
- Both Houses could agree to modify a rule.
- Both Houses could agree that a rule should not be made.
- After such agreement, the rule would operate only in the modified form or cease to have effect, as applicable.
- A later modification or annulment would not invalidate anything already validly done under the rule before that change.
Payment of Gratuity Rules Under the Former Act
The rule-making power under the former Act supported subordinate legislation dealing with the administration and procedure of gratuity claims. For establishments for which the Central Government was the appropriate Government, the Payment of Gratuity (Central) Rules, 1972 historically provided procedures and forms concerning matters such as nomination, applications, notices, determination of gratuity and proceedings before the controlling authority.
Current Rule-Making Framework Under the Code on Social Security 2020
The Code on Social Security uses a more detailed allocation of rule-making powers. Section 154 deals with the power of the appropriate Government to make rules, Section 155 with the Central Government's power to make rules, and Section 156 with the State Government's power to make rules. Section 159 contains further rule-making power of the Central Government for specified matters under the Code.
The Ministry of Labour and Employment issued official guidance dated 29 January 2026 specifically identifying Sections 154, 155, 156 and 159 as provisions defining rule-making powers under the Code and providing annexures on the sections for which rules are to be framed by the respective Governments.
Repeal and Savings
Section 164 of the Code on Social Security contains repeal and savings provisions relating to the enactments consolidated by the Code, including the Payment of Gratuity Act, 1972. The legal effect of former rules, notifications, actions and proceedings must therefore be considered with the applicable savings and transitional provisions.
Related Provisions
See also Section 2 - Definitions, Section 4 - Payment of gratuity, Section 7 - Determination of gratuity, Section 14 - Overriding effect and this Section 15 on rule-making power.
Official Legal Resources
For authoritative current material, refer to the Ministry of Labour and Employment - Code on Social Security, 2020, the official Code text, the 21 November 2025 commencement notification, the Ministry guidance on rule-making powers, and the Labour Codes rules and notifications page.
This article provides general statutory information. For a current compliance or gratuity proceeding, the latest notified rules and Gazette notifications applicable to the establishment and jurisdiction should be verified.