Our Company Is Closing 5 Years Now, Are We Eligible For The Gratuity Plan?

Dear Friends,
Our company is closing 5 years now, and I understand we are eligible for the gratuity plan.
Can someone advise me on the process to take this ahead?
Regards
Zita

Dear Member
Your query is not clear. Do you want to say that your company is closing now after being in operation for 5 years or the company has / will be completing 5 years and what are your entitlements under payment of gratuity act.
Please be specific about your query.
Regards
Preetam Deshpande

Oh I am sorry my bad typo that was,
What I was trying to mention was, our company has successfully completed 5 years of operations, we would like to introduce Gratuity now, so kindly advise on further proceedings for the same.
Once again my apologies for the wrong typo.
Regards
Zita

Hi Zita,
Do you want to introduce Gratuity in your organization? This not clear even. Did anybody resigned from your organization, who had been working in your company since 5 years?

Hi
you can approach LIC nearer to place of work and buy a gratuity policy after creating Gratuity Trust in your company by creating board of trustees and a trust deed. LIC officers will help in enrolment and administration of policy.

I wish to introduce Gratuity to the system, so need to know how to go about the process for the same.

You don't need to introduce gratuity
It applies to all companies, even of the company has not competed 5 years.
The only limitation sim that it needs to have more than 10 employees.
Perhaps you meant you want to formally announce that gratuity is available and how to claim it (on resignation or termination). For that, you can simply display the abstract of the act on your notice board (actually it's mandatory to do so)
If you mean you need to plan for it, then the process is already provided by other members.

Dear Zita,
The Payment of Gratuity Act,1972 is applicable to
(i) every factory, mine, oilfield, plantation, port and railway company (ii) to every shop or establishment in which ten or more persons are employed or (iii) such other establishments or class of establishments as the Central Government may issue notification in this behalf.
I agree with Sh Banerjee that the Act automatically stand apply, if your establishment fulfill the above conditions.
If you are not covered under the Act, you are free to introduce your own scheme,but if at any time, the no.of employees became ten or more, you will have no alternative but to comply with the provisions of the Act.
BS Kalsi
Member since Aug 2011