Dear Seniors,
Our company is completed six years, and still we have not registered in Gratuity scheme. Recently our two employees left the job, at the time of full and final settlement I have paid the gratuity amount as per the Act and management was also agree to pay that amount to them.
Now my question is that our company is still not registered in Gratuity ( because of some management issue) but we are paying the gratuity amount to the employee at the time of leaving the organization. In that case which documents I have to maintain for the employees gratuity benefits, or which form I have to filled up from them.
Please help.
Thanks & Regards
Vaishali
From India, Mumbai
3Our company is completed six years, and still we have not registered in Gratuity scheme. Recently our two employees left the job, at the time of full and final settlement I have paid the gratuity amount as per the Act and management was also agree to pay that amount to them.
Now my question is that our company is still not registered in Gratuity ( because of some management issue) but we are paying the gratuity amount to the employee at the time of leaving the organization. In that case which documents I have to maintain for the employees gratuity benefits, or which form I have to filled up from them.
Please help.
Thanks & Regards
Vaishali
From India, Mumbai
Hi Vaishali,
In this case, you must have to develop some forms that assure the compliance with the rules and regulations of your institution as well as, develop the financial statements of employers, that contained the summaries as well individual accounts. It will also helps you in calculating the amount of gratuity of employe that is quit.
I can help you to device the basic frameworks that helps in this regards.
regards
Yasser
From China
In this case, you must have to develop some forms that assure the compliance with the rules and regulations of your institution as well as, develop the financial statements of employers, that contained the summaries as well individual accounts. It will also helps you in calculating the amount of gratuity of employe that is quit.
I can help you to device the basic frameworks that helps in this regards.
regards
Yasser
From China
dear vaishali, as per ur query, you fill up FORM-F for nominee of gratuity. When any employee has completed 4 year 9 months he is eligible for gratuity.
From India, Delhi
From India, Delhi
Sub- gratuity
Hi Vaishali,
Registration is only procedural and non-registration does not absolve you of your responsibility to comply with the provisions of the Act. The following are the important compliances.
1) The employer has to submit details of opening his establishment in Form-A to the Controlling Authority within 30 days of the gratuity rules becoming applicable to him.
2)Any cahnge in the name and address of the employer, the same shall be communicated to him in Form-B
3) The employer shall obtain nomination from the employee in Form-F
4) The employer shall dispaly at or near the main entrance of the establishment a notice in bold letters in English or in a language understood by majority of employees, specifying the name of the officer with designation who is authorised to by the employer to recieve notices under the Act on his behalf.
5)The employer is required to dispaly an abstarct of teh Act and rules in Form-U in English or in a language understood by majority of employees at a conspicuous place.
6) the employee shall make an application in Form-I for payment of gratuity within 30 days of it becoming payable. Incase of employees, the nominee shall make the application in Form-J. In teh absence of nominee, the legal heir shall make such application in Form-K.
7) The employer thereafter shall give notice of payment in Form-L within 15 days of receipt of such application.
8)If gratuity is not payable , the employer shall inform the employee/nominee about it in Form-M.
9) If the gartuity is payable, the employer shall arrange to pay it within 30 days from the date of it becoming payable.
B.Saikumar
HR& Labour Law Consultant
Chipinbiz Consultancy Pvt.Ltd
Mumbai.
From India, Mumbai
Hi Vaishali,
Registration is only procedural and non-registration does not absolve you of your responsibility to comply with the provisions of the Act. The following are the important compliances.
1) The employer has to submit details of opening his establishment in Form-A to the Controlling Authority within 30 days of the gratuity rules becoming applicable to him.
2)Any cahnge in the name and address of the employer, the same shall be communicated to him in Form-B
3) The employer shall obtain nomination from the employee in Form-F
4) The employer shall dispaly at or near the main entrance of the establishment a notice in bold letters in English or in a language understood by majority of employees, specifying the name of the officer with designation who is authorised to by the employer to recieve notices under the Act on his behalf.
5)The employer is required to dispaly an abstarct of teh Act and rules in Form-U in English or in a language understood by majority of employees at a conspicuous place.
6) the employee shall make an application in Form-I for payment of gratuity within 30 days of it becoming payable. Incase of employees, the nominee shall make the application in Form-J. In teh absence of nominee, the legal heir shall make such application in Form-K.
7) The employer thereafter shall give notice of payment in Form-L within 15 days of receipt of such application.
8)If gratuity is not payable , the employer shall inform the employee/nominee about it in Form-M.
9) If the gartuity is payable, the employer shall arrange to pay it within 30 days from the date of it becoming payable.
B.Saikumar
HR& Labour Law Consultant
Chipinbiz Consultancy Pvt.Ltd
Mumbai.
From India, Mumbai
Shri. B. Saikumar,
Thanks for sharing such important information..It is really helpful for all of us...
Most of the forms we are not maintaining right now, since through such posting, we will be able to comply all the provisions of the Act.
Thanks again!!!!!!!
Regards
Atul S Malve
Manage-HR & Admin
Solapur.
From India, Sholapur
Thanks for sharing such important information..It is really helpful for all of us...
Most of the forms we are not maintaining right now, since through such posting, we will be able to comply all the provisions of the Act.
Thanks again!!!!!!!
Regards
Atul S Malve
Manage-HR & Admin
Solapur.
From India, Sholapur
Dear sir i am working as a HR in reputed concern we dont have grauity but we are ready to implement this scheme pl tell me what are the procedure
From India, Karur
From India, Karur
Dear All,
Thanks for the useful information. Still I have some query like -
1) Is it necessary to register gratuity under the Insurance company.
2) Is it the right way that our company is not registered but we are giving the gratuity amount to left employees.
3) If it is necessary to register then which benefits will get the employer under this scheme.
With best regards
Vaishali
From India, Mumbai
Thanks for the useful information. Still I have some query like -
1) Is it necessary to register gratuity under the Insurance company.
2) Is it the right way that our company is not registered but we are giving the gratuity amount to left employees.
3) If it is necessary to register then which benefits will get the employer under this scheme.
With best regards
Vaishali
From India, Mumbai
Dear Vaishali,
I would like to have some clarifications...
1. Even if it is not registered with the competent office, employer has to give Gratuity to his employees, when they becomes eligible for it.
2. It is upto the organization, that they wants to cover the grauity through any insurnace policy or not. To cover the Gratuity under any insurance policy is to get the financial benefits to the employer on his investments to be done through policy. However it is not compulsion to make it throuh policies. You can also pay the gratuity directly from your company accounts, when it becomes due. You must not be dependent on the policy till releasing the payments after gratuity claim, for any particular case. It is just a supportive decision, to make is through insurance policy to cover the investments.
3. If your company goes for Group Gratuity policy under any insurance company, you may have the Income Tax exumptions upto certain level as well as interest upto some extent on the invested amount through group gratuity policy. For more information, you may consult with your seniors in Finance / Accounts.
I hope this has cleared your doubts,
Regards,
Atul S Malve
Manager- HR & Admin
From India, Sholapur
I would like to have some clarifications...
1. Even if it is not registered with the competent office, employer has to give Gratuity to his employees, when they becomes eligible for it.
2. It is upto the organization, that they wants to cover the grauity through any insurnace policy or not. To cover the Gratuity under any insurance policy is to get the financial benefits to the employer on his investments to be done through policy. However it is not compulsion to make it throuh policies. You can also pay the gratuity directly from your company accounts, when it becomes due. You must not be dependent on the policy till releasing the payments after gratuity claim, for any particular case. It is just a supportive decision, to make is through insurance policy to cover the investments.
3. If your company goes for Group Gratuity policy under any insurance company, you may have the Income Tax exumptions upto certain level as well as interest upto some extent on the invested amount through group gratuity policy. For more information, you may consult with your seniors in Finance / Accounts.
I hope this has cleared your doubts,
Regards,
Atul S Malve
Manager- HR & Admin
From India, Sholapur
Dear Mr. Atul,
Thanks for the clarification, and its really very good for me to get the clarification from you, because I am a regular reader of your all quotes. Your all posts and clarification easily solve the problems and got clear answers too.
I have one more query that, as per the act while calculating the gratuity amount we have to take Basic + DA . But in our salary break up we don’t have DA component. The components of our break up is Basic, HRA, Conveyance, Medical, Edu. Allow, and other allowance. so the last time while calculating the Gratuity amount I take Basic + other allowance ( to give the more benefits to employee) is it right ?
Please confirm.
Best Regards
Vaishali
From India, Mumbai
Thanks for the clarification, and its really very good for me to get the clarification from you, because I am a regular reader of your all quotes. Your all posts and clarification easily solve the problems and got clear answers too.
I have one more query that, as per the act while calculating the gratuity amount we have to take Basic + DA . But in our salary break up we don’t have DA component. The components of our break up is Basic, HRA, Conveyance, Medical, Edu. Allow, and other allowance. so the last time while calculating the Gratuity amount I take Basic + other allowance ( to give the more benefits to employee) is it right ?
Please confirm.
Best Regards
Vaishali
From India, Mumbai
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