How Do I Open a Gratuity Account and What’s the Role of Form A in Payments?

Gratuity Account Opening Procedure

Our company, established in 2009, operates in the service industry with 53 employees. I am inquiring about the process for opening a gratuity account. Is there a registration requirement for this?

Significance of Form "A" in Gratuity Payment

Additionally, I would like to understand the significance of Form "A" in the payment of gratuity. Is it obligatory to complete this form, and if so, where should it be submitted?

Regards

You have to send a notice of opening in the prescribed Form A along with a cover note to the Controlling Authority, i.e., the Labor-cum-Conciliation Officer of your region.

Regards

Thank you, Mr. Jain, for your quick reply. I want to know from the employer's point of view what the procedure is from the very beginning. I have recently read about Form "F," which is to be collected first from the employees.

I think that you are from U.P. In that case, please refer to the P.G (Uttar Pradesh) Rules, 1975.

Notice of Opening - FORM A

- Should be submitted to the C.A for the area within 30 days of the Rules becoming applicable. [Rule 3(1)]

Nomination - FORM F

- Should be obtained from the employee in duplicate within 30 days of completion of one year of service and be verified with his service records within 30 days of receipt, and the duplicate copy be returned. [Rule 6]

Regards,

I also want to know when Form A should be submitted by the employer. Is it after the completion of 5 years by any employee, or right from the very beginning when the company was established?

The Government of Haryana has framed their rules under the Payment of Gratuity Act to be known as the "Haryana Payment of Gratuity Rules, 1972." Form 'A' has been prescribed under their rules, which you should have filled up and sent to the Controlling Officer of the Area within THIRTY DAYS of employing TEN or more persons in your company, which is a mandatory requirement. There is no procedure of registration under the Payment of Gratuity Act. The Government of Haryana has declared their Labor-cum-Conciliation Officer to be the Controlling Officers under their rules.

You have rightly pointed out that the Form "F" is to be collected from the employees. Rule 6 of Haryana Payment of Gratuity Rules, 1972 stipulates that all employees who have completed one year of service shall submit their Form-A within THIRTY days.

I believe the above is clear to you.

Regards,
BS Kalsi
Member since Aug 2011