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CMA Intermediate · Business Laws and Ethics · Payment of Gratuity Act, 1972

Section 164(2)(a) of the Code on Social Security, 2020 provides that a rule, notification or scheme made under a repealed Act, such as the Payment of Gratuity Act, 1972, will:

Such rules and notifications are deemed made under the corresponding provisions of the Code and remain in force to the extent they are not contrary to it, until the appropriate Government repeals them. They do not lapse immediately or after a fixed year.

  1. ALapse immediately on commencement of the Code
  2. BBe deemed made under the corresponding provision of the Code and stay in force to the extent not contrary to the Code, until repealed by the appropriate GovernmentCorrect
  3. CContinue for exactly one year and then lapse automatically
  4. DContinue only if re-notified by Parliament

Explanation

Section 164(2)(a) deems actions, rules and notifications under repealed Acts to be made under the corresponding provisions of the Code. They remain in force to the extent not contrary to the Code, until the appropriate Government repeals them. The one-year period in clause (b) applies only to specified Provident Fund and ESI schemes and rules.

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