Payment of gratuity

  • Act/Rule/Legislation

  • Online Link to Act/Rule/Legislation

  • Initial Setup or Ongoing Maintenance

    Ongoing compliance requirement

  • Filing and Maintenance Requirements

    Payment of gratuity in the manner specified in the Rules. The below forms must be filed:
    1. FORM A - Notice of Opening
    2. FORM B - Notice of Change
    3. FORM C - Notice of Closure
    4. FORM F - Nomination
    5. FORM G - Fresh Nomination
    6. FORM H - Modification of Nomination
    7. FORM I - Application for gratuity by an employee
    8. FORM J - Application for gratuity by a nominee
    9. FORM K - Application for gratuity by a legal heir
    10. FORM L - Notice for payment of gratuity
    11. FORM M - Notice rejecting claim for payment of gratuity
    12. FORM N - Application for direction Before the Controlling Authority
    13. FORM T - Application for recovery of gratuity

  • Penalty

    Not available

  • Application Guidelines / Responsible Persons / Comments

    "Gratuity is paid when an employee reaches Superannuation, Retires, or Resigns after completion of 5 years of continuous service. In case of death of an employee or disablement due to accident or illness, continuous service of 5 years is not necessary to consider for gratuity payment.
    Compliances

    Applicability
    • Every factory, mine, oilfield, plantation, port and railway company
    • Every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a state, in which 10 or more persons are employed, or were employed, or any day of the preceding 12 months;
    • Such other establishments or class of establishments, in which 10 or more employees are employed, on any day of the preceding 12 months, as the central government may, by notification, specify on this behalf
    "