Dear Citehr members,

The company in which I am working has 21 employees, and our company is registered under PF and ESI but not under the Payment of Gratuity Act. Our company has completed its five years, and there are employees who have completed 4 years. Since my company is not registered under the Payment of Gratuity Act, what steps should I follow to register it? Is there any penalty that we will be charged?

Regards,
Asmita

From India, Mumbai
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Mr. Archit Kulkarni, why is it mentioned in the Payment of Gratuity Act that by filling out FORM A under the act within 30 days of the establishment of the company, it should be submitted to the controlling authority?
From India, Mumbai
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I agree with my senior colleague Sh. Varghese Mathew that no registration is required under the Payment of Gratuity Act. However, a notice of the opening of the establishment, as well as a notice of closure, needs to be sent to the Controlling Authority of the area in the prescribed forms framed under the respective state rules. I would like to add to my colleague's email that besides the above, the Abstract of the PG Act and rules needs to be displayed, and a Notice of change in the particulars of the establishment needs to be sent to the Controlling Authority of the area.

Regarding your query about the penalties, you are requested to refer to Section 9 of the Act.

Regards,
BS Kalsi
Member since Aug 2011

From India, Mumbai
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Dear Seniors, I was told by one of my seniors that the Payment of Gratuity Rules - Form F (central) should be filled out by each employee of the organization. This form is actually for the nomination details and certification by the employer. These forms need to be submitted to the local Labour Office. Is it true?

Regards,
Jayeeta

From India, Calcutta
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Dear BS Kalsi, our company have not submitted notice of opening of the establishment, so if I send the notice now will my company be charged some penalty? Regards, Asmita
From India, Mumbai
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In reference to your query, I wish to clarify that though Section 9 deals with the penalties under the Payment of Gratuity Act for which non-compliance with any of the provisions of the Act or Rules is equally punishable, the cognizance of the offense tilts more towards non-payment of gratuity. In my opinion, this is not such a serious offense for which the inspector will waste his time unless he has some grudge against the establishment.

Regards,
BS Kalsi
Member since Aug 2011

From India, Mumbai
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