How Do I Register My Facility Management Business Under the Gratuity Act and Handle Gratuity for Employees?

Good Morning Team, This is Rohan Kubal, practicing HR for the last 7 years. However, I am planning to advance in my career and have decided to start Facility Management services (Housekeeping, Cleaning, and Maintenance services).

I kindly request your guidance on the process of registering a company under the Gratuity Act. I also seek information on how to process gratuity for individual associates. While I am familiar with the formula and calculation, I am not well-versed in the process.

I would like to understand the government and banking procedures involved in enrolling and disbursing gratuity to associates.

Regards, Rohan Kubal

There is no need to register your company under the Gratuity Act. All the acts are included when you obtain the Labour License from the Local Labour Legislative Authority.

I hope you are familiar with the Gratuity Formula. You will need to receive a request from the employee during their settlement for gratuity, and you must submit Form L to the authority during their inspection.

Some companies may choose to utilize LIC to handle the Gratuity payments. You can contact them to obtain further details.