Gratuities to employees are governed by the Payment of Gratuity Act No 12 of 1983.
A gratuity is a lump sum payment made in recognition for services at the end of a period of employment. Under the Act, any employer who has employed more than 15 employees in any industry during the 12 months preceding the termination of the worker in question, is required to pay a gratuity to that worker if they have completed five years of service.
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