QUERIES
Hi All,
My company’s strength is 30 members as of now, shell I go for Gratuity Act? Company has started in the year 2003 May.
Can I get the information on gratuity form PF Office?
Pls help me in this.
Thanks
Anita

21st November 2007 From India, Bangalore

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HI Anitha,
Since your company started in May 2003, the employees will become applicable to get a gratuity after end of Five years of continous service.
Also tell me your organisation is registered under which act , means factory Act, Shops & establishment etc. You need to see the applicability of the act for your Organisation.
Also u can go through the Gratuity Act for additional information. PF dept will not help you in Gratuity.
Enjoy,
Harshad
21st November 2007 From India, Mumbai
Dear Anitha
Greetings
You have to understood the fact that Gratuity is not coming under the purview of EPF Act. It is a separate legislation applicable to all the company having more than 20 employees.
Eligibility of Gratuity will only arise only in case of resignation / termination / discharge of an employee and that too gratuity is eligible only for employee who has completed 5 years of service in a company.
It is based on 15 days salary per year of service. The max amount of Gratuity that one can get is Rs.3.5 lakhs.
More inputs i can share if you require.
Cheers
Trisha
HR Professional

21st November 2007 From India, New Delhi
Hi
thanks for your quick response.
my company is registered under Shops & establishment act.
and for gratuity i need details like
Application form, Registration details ets. where i can find this.
thanks once again
:) :) :)
Anita
21st November 2007 From India, Bangalore
Hi, Take book for Gratuity Act 1972. You will find answer for all quaries. The Act will be applicable to our organisation since u are registered under Shop & Establishment Act. Enjoy, Harshad
21st November 2007 From India, Mumbai
Dear Anitha
There is no need to register. But there are additional benefits available with LIC of india under Group gratuity scheme which is a seperate procedure can be explained by any Business devept manager of LIC.
As regard to forms you have to buy Gratuity act book and where the model forms available at the end of act and rules.
Cheers
Trisha
HR Professional

21st November 2007 From India, New Delhi
Hi Anita,

There is no registration required for gratuity. It is mandatory from the employer to pay the gratuity @ 15 days basic + DA salary for every year of service completion. An employee becomes eligible to get the gratuity once he completes 5 years of service. Even if the employee leaves the company one day before the completion of 5 years, he is not eligible for gratuity.

To maintin this fund, you need to form a Gratuity Trust and the Directors, HR In-charge nd Accounts In-charge may become the trustees.

If you don't want the headache of starting the trust and maintain the fund etc, there are financial institutions, banks, Insurance companies are maintaining the gratuity fund on behalf of the company. You can contact them. If you need any help on good institution for maintaing the fund do let me know, I can help you out by recommending a good company.

Regards,

Umesh.S

Note: May I know your qualification? Because this is one of the act every HR person should know. There are lot of bare act books are available in the book shops with less cost (say Rs.5/- or Rs.10/- per act or combination of labour act within the cost of Rs.50 or Rs.75/-) Please make use of it. Sorry if I have hurted you by saying this.
21st November 2007 From India, Bangalore
Hi Trisha,
thanks for the reply, i dont have any prob in EPF, and i know Gratuity is totaly different from EPF,
actually some time back i spoke to one person, he is in gratuity dept in canara bank, and he told me the all the application form you can collect from PF office only. so i had a doubt. and i am here to clear my query.
Anita
21st November 2007 From India, Bangalore
Dear Anita

Greetings!

I too agree vth umesh.

Applicability

Every factory, mine, oil field, plantation, port, railways, company, shop, establishment or educational institutions employing 10 or more employees

Wages for Calculation

@ 15 days’ wages for every completed year as if the month comprises of 26 days at the last drawn wages.

Qualifying period

On rendering of 5 years’ service, either termination, resignation or retirement.

Employee

All employees irrespective of status or salary

Entitlement

On completion of five years’ service except in case of death or disablement

Nomination

To be obtained by employer after expiry of one year’s service, in Form ‘F’

Maximum Ceiling

Rs.3,50,000

Statuory Compliance Forms

S.No Type & Nature Of Document Description Of the Form

1 Form A Notice Of Opening

2 Form B Notice Of Change

3 Form C Notice Of Closure

4 Form D Notice for excluding husband from family

5 Form E Notice of withdrawal of notice for excluding husband from family

6 Form F Nomination

7 Form G Fresh Nomination

8 Form H Modification Of Nomination

9 Form I Application for gratuity by an employee

10 Form J Application for gratuity by a nominee

11 Form K Application for gratuity by a legal heir

12 Form L Notice for payment of gratuity

13 Form M Notice rejecting payment of gratuity

14 Form N Application for direction

15 Form O Notice for appearance before the controlling authority

16 Form P Summons

17 Form Q Particulars of application under Section 7

18 Form R Notice for payment of Gratuity

19 Form S Notice for payment of Gratuity as determined by appellate authority

20 Form T Application for recovery of gratuity

21 Form U Display of abstract of the act and rules

Hope this helps u to some extend

Rgds,

John N
21st November 2007 From India, Madras
Hi John/ Umesh, greetings :) :) :) :) thanks for the response, Umesh pls let me know the institution who can help me in maintaining these a/C. Have a gr8 time :) Anita
21st November 2007 From India, Bangalore

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