Gratuity Payment Challenges: How Should Our Logistics Firm Implement It Now?

Gratuity Payment Implementation

Our company PF enrollment started on 01.01.2007. Now, management has decided to pay gratuity to employees, but there are no provisions in place as of today.

Regards

If the query pertains to gratuity (which it seems), do not worry about the provision if your establishment is covered under the Gratuity Act of 1972 because the Act grants this right to an employee but not the employer. The Gratuity Act is applicable to every factory, shop, and establishment employing ten or more employees.

Regards,
B. Saikumar
Mumbai

Apart from Mr. Sai Kumar's advice, you can make provisions now. For those who have left, you can pay the gratuity as per the act and book it directly in the books of accounts. For those who come under the Gratuity but are still continuing the job, you can make provisions for the same in your books of accounts starting from this year. It is advisable to contact LIC, which provides good proposals for Gratuity Plans.

Firstly, thank you for sharing the valuable knowledge about gratuity. Secondly, what are the necessary steps that have to be followed by our company? Kindly revert.

Thanks & Regards,
Keerti Gupta