Compliances under the Gratuity Law: A Checklist

Aside from social reasons, it is imperative that the compliances listed below are thoroughly ensured and followed to the letter by employers as the Act imposes penal provisions upon employers for contravention of provisions under it, which include fines and/or imprisonment.

The following compliances must be ensured by an employer, under the Payment of Gratuity Act, 1972 –

  1. The Employer must submit a Notice in Form ‘A’ to the Controlling Authority of the area within 30 days of coming under the ambit of the Payment of Gratuity (Maharashtra) Rules, 1972 as per Rule 3 (1).
  2. The Employer must submit a Notice in Form ‘B’ to the Controlling Authority of the area within 30 days of any change in the name, address, employer or nature of business as per Rule 3 (2) of Payment of Gratuity (Maharashtra) Rules, 1972.
  3. As per Rule 4 of Payment of Gratuity (Maharashtra) Rules, 1972, the employer should display a Notice at or near the main entrance of the establishment in English and in a language understood by majority of the employees specifying the name of the name of the officer with designation, authorized by the employer to receive on his behalf the notices under Payment of Gratuity Act, 1972 and Payment of Gratuity (Maharashtra) Rules, 1972.
  4. A female employee willing to exclude her husband from family for the purposes of the Gratuity Act, 1972 {Section 2 (h) (ii)} should file a Notice in Form ‘D’ and send in triplicate to the employer. The employer must then record the receipt on one copy, return the copy to the employee and send the second copy to the controlling authority as prescribed under Rule 9 (1) of Payment of Gratuity (Maharashtra) Rules, 1972.
  5. A female employee may withdraw the Notice referred to above by giving notice in triplicate in Form ‘E’. The same procedure is to be followed as above.
  6. Every nomination, fresh nomination or alteration of nomination as the case may be, in various Forms F, G or H as prescribed under Rule 6 of the Payment of Gratuity (Maharashtra) Rules, 1972 should be kept in safe custody of the employer as per Section 6 (7) of Gratuity Act, 1972.
  7. As per Section 7 of The Gratuity Act, 1972 it is the employer’s duty to determine the amount of gratuity and give notice in writing to the person to whom gratuity is payable and also to the Controlling Authority specifying the amount of gratuity so determined
  8. Abstracts of the Gratuity Act, 1972 and Payment of Gratuity (Maharashtra) Rules, 1972 should be displayed in English and in the language understood by majority at a conspicuous place at or near the main entrance of the establishment as per Rule 20 of Payment of Gratuity (Maharashtra) Rules, 1972.

 

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