Understanding Gratuity Obligations: Do We Need to Register Before 5 Years?

Dear seniors, we are a team of 100 employees in a company that is 2.5 years old. I am aware that the company is responsible for paying gratuity to employees who complete five years of continuous service at the time of retirement or leaving the organization.

Inquiry on Gratuity Registration

I would like to inquire whether we need to register this obligation with the Labor Welfare Department by submitting the necessary forms, even though the company has not completed five years of operations as of today.

Submission of Employee Nomination Forms

Could you also clarify whether we are required to submit employee nomination forms (Form # F) to the Labor Welfare Department or any other government body?

I kindly request all of you to share your valuable insights for better understanding.

Thanks in advance,

Regards,
TSK

Employers need not submit the nomination forms to the controlling authority or labor commissioner but should keep them on record.

Regards,
B. Saikumar
HR and Labor Law Advisor
Mumbai

You must submit Form-A (Notice of Opening) to your concerned Labour Department. For the employees, Form-F must be submitted statutorily within 30 days after the completion of 1 year.

Thanks,
Harchand

There is no registration required if you have already registered with the Shops & Commercial Act/Factory Act. You need to take a Nomination Form F from the employees who have completed 5 years and 1 day in the same organization and keep it for your records in their personal file or gratuity file.

Please go through the contents under the Provisions of the Payment of Gratuity Act - 1971 Rules to clarify your query.

Thanks & Regards,

V R RAO PULIPAKA

Dear TSK,

I am forwarding the Gratuity Booklet in the attached PDF file, which will address all your queries.

Regards,
Ravi