Private Consultant On Labour Laws
Sr Manager Hr & Administration
* No, There is no requirement to join any Insurance Company for Gratuity Scheme.
But if your employer wants to take the tax benefits on provision than you needs to enroll with any insurance company.
* Only LIC has limitation to enroll new Clients up too 31-08-2013 as per notification by IRDA on 16-08-2013 for new clients after that Gratuity schemes will be closed for enrollment.Please confirm the same from your side.
22nd August 2013 From India, Pune
Greeting of the day,
Could you please clarify my doubt regarding Gratuity Paid,
one of our employee is working since from last 6years and died recently.kindly confirm how to gohead for making gratuity payment.
24th August 2013 From India, Bangalore
The Payment of Gratuity Act 1972 provides that in case of death, the gratuity is payable to any of the following persons:
(ii) Heirs (in absence of nomination)
In case nominee/ heir is a minor, such amount will be deposited with the Controlling Authority of the area,who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
You can advise the nominee (normally wife is of the deceased) to approach the management of the company.
Member since Aug 2011
24th August 2013 From India, Mumbai
My reply to your queries are as under in seriatim:-
1) Any Registration is necessary for employer under the Payment of Gratuity act 1972.-No Registration is required for an employer under the Payment of Gratuity Act 1972 but you are required to send a 'Notice of Opening' of your establishment in the prescribed under the state rules to the Controlling Authority of the area. Any further changes,if any, in the particulars of the establishment shall be intimated. A record of nominations in respect of all the employees,who have completed one year of service,shall be maintained
2) For gratuity payment to the employee, Is employer need to take any insurance ?(such as Gratuity Insurance etc )-No insurance is required for the gratuity payment to the employee.
Member since Aug 2011
26th August 2013 From India, Mumbai