Is It Necessary to Give a Receipt for Gratuity Form Submissions? Seeking Your Advice

Hi Team, we would like to know whether it is compulsory to provide a receipt to employees from the HR Dept if employees have submitted the gratuity form. We require your inputs on this as employees have already filled and submitted their forms to us.

Regards,
Supriya Patil HRD

Though there is no provision under the Gratuity Act or central rules thereunder to give any such receipt of having received the application, the employer under Central Rule (8) shall within 15 days of the receipt of the application nevertheless inform the employee in Form L specifying the amount of gratuity payable to them. The question, therefore, may arise as to the date from which the 15 days need to be computed. Therefore, it is prudent administratively to at least acknowledge the receipt of the application. It is not necessary that everything needs to be provided by the statute, and the employer can follow good conventions and prudent administrative practices that will advance the objectives of beneficial legislation like the Gratuity Act.

Regards,
B. Saikumar

Acknowledgment of Gratuity Nomination Form

The central and some state rules prescribe acknowledgment of the gratuity nomination form by the employer.

Regards

Supriya Madam, may you please specify whether your query is regarding nomination forms submitted by your existing employees or applications submitted by your former employees for the payment of gratuity after completing more than 5 years of service.

Thank you for the input, Mr. Saikumar. During the pre-joining process, we also fill out the nomination form with employees. We are requesting this information to be provided. Do we need to issue a receipt for the nomination form?

Thanks for the input, Mr. Saikumar. During the pre-joining process, we also fill out the nomination form for employees. Do we need to provide them with a receipt for the nomination form?

Nomination Under the Payment of Gratuity Act, 1972

Section 6 of the Payment of Gratuity Act, 1972, provides that each employee who has completed one year of service shall submit their nomination in the prescribed form (in duplicate) in favor of one or more members of their family. Form-F has been prescribed under the Payment of Gratuity (Central) Rules (copy attached). If, at the time of making a nomination, the employee has no family, the nomination may be made in favor of any person or persons. However, if the employee subsequently acquires a family, they must fill out a fresh nomination in favor of any member of their family as defined under Section 2(h) of the Act.

Clarification on Providing Receipts

As regards your query on whether it is compulsory to provide a receipt to employees, it is clarified that there is no provision to provide a receipt to employees. Instead, you need to provide a copy of the Form-F to the employees after having accepted the nomination.

Regards,
BS Kalsi
Member since Aug 2011

The Maharashtra Gratuity Rule 6 under the Gratuity Act requires an employee to submit the nomination form in Form F in duplicate after taking proper receipt if delivered to the employer in person. Therefore, you need to give a receipt of having received the nomination form.

Regards,
B. Saikumar