Understanding Employer and Contractor Obligations Under the Gratuity Act, 1972: What Are the Key Procedures?

To All,

1) Kindly let me know what the procedures and obligations of an employer are under the Gratuity Act, 1972, regarding the registration of the firm, etc.

2) We have a permanent contractor, and his employees have been working for a long time. Is the contractor also obligated to pay gratuity to his workers? If so, what formalities does he need to complete with government offices?

Archana Bakshi

An employer has to give notice in Form A within 30 days of its (Payment of Gratuity) application to the Controlling Authority. Yes, your contractor is bound for the Payment of Gratuity.

Regards

Yes, you just need to send the notice of the opening of your establishment with 30 days from the opening in Form A to the Controlling Authority appointed under the Gratuity Act. Notice of change at any time in Form B needs to be sent to the Controlling Authority within 30 days of any change. The Nomination Form of all employees in Form F needs to be maintained and revised after marriage in Form G. Notice of the appointing authority by management, who is authorized to receive notice from any employee, etc., needs to be displayed on the notice board with the name & designation of the person so appointed. Display of an abstract of the Act & rule on the notice board. This is the compliance that needs to be done under the Payment of Gratuity Act; no other kind of registration is required.

Welcome to CiteHR. This is to inform you that the Payment of Gratuity Act does not provide us with the forms. Forms are provided by the applicable Rules, so first decide which of the central or state Act is applicable in your case, and then go through those Rules to obtain form 'A'.

Regards,
R.N. Khola
(M) [Phone Number Removed For Privacy Reasons]