Hi Nitish,
Gratuity is a Fund which is deposited and maintained with any insurance company (eg. oriental insurance, lic etc).
once, an employee completes continuous of Five years of service he shall be paid gratuity as per the formula provided.
the company needs to pay premium regarding this.
the company shall send the employees resigned and have completed five years of service who are eligible for gratuity. once, this is done, insurance company shall draw a cheque in favour of company and inturn, company shall give a cheque to the ex-employee...........
regards,
Viswanath