Is Gratuity Fund Creation Mandatory for Companies? Clarification Needed on Maharashtra's Notification Dates

Dear Sir/Madam,

I have a doubt as to whether every company should compulsorily create a fund for the payment of Gratuity. After going through the provisions of the Act, I found that insurance is compulsory as per Sec. 4A (1), but I am not sure about the applicability date. Please specify whether the said section has been notified by the Central Govt. and State Govt. of Maharashtra, and if yes, then when?

Notification of Section 4A(1) of the Payment of Gratuity Act, 1972 in Maharashtra

In response to your query, as of the latest information available, Section 4A(1) of the Payment of Gratuity Act, 1972 has been notified by both the Central Government and the State Government of Maharashtra. This section mandates that every employer with ten or more employees must take out an insurance policy for the purpose of paying gratuity to their employees.

Here are the key points regarding the notification and applicability in Maharashtra:
- The Central Government notified Section 4A(1) of the Payment of Gratuity Act, 1972, making it compulsory for employers to provide gratuity through an insurance scheme.
- The State Government of Maharashtra has also adopted this provision, ensuring its applicability within the state.
- The notification date for the implementation of this section may vary, and it is advisable to refer to the official gazette notifications issued by the respective authorities for the exact date of applicability.

For specific details on the applicability date in Maharashtra and any additional requirements or clarifications, it is recommended to consult the official government sources or legal experts familiar with labor laws in the state.

By adhering to the provisions outlined in Section 4A(1) of the Act, employers in Maharashtra can ensure compliance with the gratuity regulations and provide the necessary benefits to their employees as mandated by law.