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y123-56
33

Dear Citehr members,
The company in which i am working has 21 employees and our company is registered under PF and ESI but not under PAYMENT OF GRATUITY ACT.
our company has completed its five years and there are employees who have completed 4 years since my company is not registered under payment of gratuity act
1.what step should i follow to register it?
2. Is there any penalty that we will be charged?
Regards,
Asmita

From India, Mumbai
Archit Kulkarni
13

Dear Asmita,
There is no separate registration under Payment of Gratuity Act. It is to be directly paid to the employee who leaves the organisation after 5 years of service.
However, you can create a separate fund with the insurance co.'s like LIC, TATA, etc. In that case you have to pay the yearly premium to the insurance co. & the insurance co. in turn will pay the gratuity to the employee. There are various benefits of making a separate fund.
You can get in touch with us at for helping in setting up the fund.

From India, Pune
y123-56
33

Mr. Archit Kulkarni.,
Then why in Payment of gratuity act it is mentioned that by filling FORM A under the act within 30 days of establishment of the company it is to be submitted to the controlling authority?

From India, Mumbai
varghesemathew
910

Only a notice of opening of establishment to be given to Controlling Authority.No registration as such.Similarly when the establishment is being closed notice of closure also to be given to CA.
Varghese Mathew
9961266966

From India, Thiruvananthapuram
9871103011
455

Dear Asmita,
I agree with my senior colleague Sh Varghese Mathew that no registration is required under the Payment of gratuity Act, but notice of opening of the establishment as well as notice of closure needs to be sent to the Controlling Authority of the area in the prescribed forms framed under the respective state rules.I would like to add to my colleague\'s mail that besides the above, the Abstract of the PG Act & rules needs to be displayed and Notice of change in the particulars of the establishment needs to be sent to the Controlling Authority of the area.
As regards your query about the penalties, you are requested to refer to Section 9 of the Act.
BS Kalsi
Member since Aug 2011

From India, Mumbai
DE SOVRANI
3

Dear Seniors,
I was told by one of my senior that Payment of gratuity rules - Form F (central) should be filled up by each employee of the organization which is actually is Nomination details and certification by the employer.These Forms needs to be submitted to the local Labour Office.
Is it trues?
Jayeeta

From India, Calcutta
varghesemathew
910

Form 'F' / nomination need not be send to any office.You have keep one copy of it in your records and return another copy to the employee acknowledging the receipt of nomination.Do this when an employee make any changes in his nomination.
Varghese Mathew
9961266966

From India, Thiruvananthapuram
y123-56
33

Dear BS Kalsi, our company have not submitted notice of opening of the establishment, so if I send the notice now will my company be charged some penalty? Regards, Asmita
From India, Mumbai
9871103011
455

Dear Asmita,
In reference to your query,I wish to clarify that though Section 9 deals with the penalties under the Payment of Gratuity Act for which non-compliance with any of the provisions of the Act or Rules is equally punishable, but the cognizance of offence tilt more towards non- payment of gratuity.In my opinion, this is not so a serious offence,for which the inspector will waste his time,unless he has some grudge against the establishment.
BS Kalsi
Member since Aug 2011

From India, Mumbai
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