How Do I Handle Gratuity Payments for a Retiring Employee in the Manufacturing Sector?

I am working as an HR professional in the Manufacturing Industry in Bangalore. One of our employees has reached the age of 58 years and is covered under the Gratuity Act of 1972. Could anyone please advise me on the process, necessary documents, and forms required to pay gratuity to an employee? Your assistance in this matter would be greatly appreciated. I am looking forward to your response.

Thank you,

Vikas

There is no need for any document. If eligible, it is the duty of the employer to pay gratuity within 30 days of retirement.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

From the employer's side, any proof should be kept for paying gratuity to an employee. Regarding the calculation and payment of the gratuity amount, in case we need to show it to any government officers.

Thank you,

Vikas

From the employer's side, you should keep a record of the payment of gratuity with acknowledgment from the employee. Please refer to the rules in Maharashtra as well.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

Gratuity Payment Process

As per the Gratuity Act, the employee needs to apply for gratuity in the specified form (Form I). The employer needs to compute gratuity and pay the same, with details provided in Form J. Even if the employee does not apply, the employer should still pay the same within 30 days from the separation.

It's a good idea to keep the relevant forms, a signed copy of the settlement sheets, and workings for future reference.

Regards