Gratuity Payment - Company Policy

Hi Seniors,
I've recently joined a mfg co in Mumbai. the company does not have gratuity policy and there are few employees who have completed 5 yrs and more and 3 employees have completed 10+ yrs and will retire next year. My query is :
Please let me know whether its compulsory for all the companies to register under gratuity act 1972 to avail gratuity and if the company is not registered what will be the consequences?
Awaiting your valuable feedback.
Thanks and regards,
coolchini

Dear Coolchini,

It is not necessary to frame or have gratuity policy in the establishment. If the Act is applicable then we are to implement this.The Payment of Gratuity Act, 1972 do not have any provision who directs us to register the companies under this Act. In compliance of the P G Rules we are required to intimate the area Controlling Authority within 30 days of the Rules becoming applicable to the establishment in the format as prescribed under the applicable State or Central Rules as the case may be.
Regards,
R.N.Khola

Hello coolchini :-)
It is essential for payment of gratuity if your company employs more than 10 employees. After registration even if the employee number decreases below 10 the governance of the act stays intact.
If any company tries to avoid payment of the gratuity by means of infringement, the company could be penalized to the tune of Rs. 10,000 or more along with imprisonment of the concerned authority to a term of 3 months and even more.
Please checkout the link; http://www.wiziq.com/tutorial/31412-gratuity-act-1972
*Seniors please Clarify for any recent updates
Regards,
Shreekanth.P.R

Hi,
It is not compulsory to registered under Gratuity Act. Act is automatically applicable if any firm / Establishment / Factory enroll 5 no. of employee any working days. There are so many options & ideas to make provision for Gratuity act. You can call me for further details.
Regards,
Mob - 9 8 2 0 3 3 0 8 8 7
AMIT B. MISTRY
Adviser & Consultant in
Shop & Establishment.
Professional Tax Act.
Labour Laws.
Factory Act.
E.S.I. Act.
P.F Act.

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According to me it is compulsory because gratuity act is for their benefit after retirement and it is made by d govt. for all.

Dear Member,
Which of the provision/ rules of the Payment of Gratuity Act, 1972 say that we are to register the establishment compulsorily?
Regards,
R N Khola