Payroll Manager Tutorial | Payment of Gratuity Act

Payment of Gratuity Act

 

Payment of Gratuity Act

  • Short title and commencement.-(1) these rules may be called the Payment of Gratuity (Central) Rules, 1972.
  • These rules shall come into force on the 16th September, 1972;
  • -In these rules, unless there is anything repugnant in the subject or context,-
  • “Act” means the Payment of Gratuity Act, 1972 (39 of 1972);
  • “Appellate authority” means the Central Government or the authority specified by the Central Government under sub-section (7) of section 7;
  • “Form” means a form appended to these rules;
  • “nomination” means nomination made under section 6;
  • “Section” means a section of the Act.
  • Notice of opening, change or closure of the establishment. – (1) within thirty days of the rules becoming applicable to an establishment, a notice in Form A shall be submitted by the employer to the controlling authority of the area.
  • A notice in Form B shall be submitted by the employer to the controlling authority of the area within thirty days of any change in the name, address, employer or nature of business.
  • Where an employer intends to close down the business he shall submit a notice in Form C to the controlling authority of the area at least sixty days before the intended closure.
  • Display of notice.-(1) The employer shall display conspicuously a notice at or near the main entrance of the establishment in bold letters in English and in a language understood by the majority of the employees specifying the name of officer with designation authorized by the employer to receive on his behalf notices under the Act or the rules.
  • A fresh notice shall be displayed immediately after the notice referred to in sub-rule (1) becomes illegible or requires a change.
  • Form of notice under proviso to section (2) (h) (ii).-(1) A notice under the proviso to sub-clause (ii) of clause (h) of section 2 shall be in Form D and sent in triplicate by the employee to the employer, who shall, after recording its receipt on one copy thereof, return the copy to the employee and send the second copy to the controlling authority of the area

 

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Vide G, S.R. 412 (E). Dated 16th September, 1972, published in the Gazette of India; Extra. Pt. II, Sec. 3(i), dated 16th September, 1972.
 

 

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By section 2 of the Payment of Gratuity (Amendment) Act, 1987 (22 of 1987) proviso to sub-  clause (ii) of clause (h) of section 2 of the Payment of Gratuity Act, 1972 (39 of 1972) has been omitted (w.e.f. 1-10-1987) and accordingly rule 5 along with Forms D and E have become  redundant, Ed.

 

  • An employee may withdraw the notice referred to in sub-rule (1) by giving another notice in triplicate in Form ‘E’ to the employer, who shall follow the same procedure as in sub-rule (1).
  • -(1) A nomination shall be in Form ‘F’ and submitted in duplicate by personal service by the employee, after taking proper receipt or by sending through registered post acknowledgement due to the employer,
  • in the case of an employee who is already in employment for a year or more on the date of commencement of these rules, ordinarily, within ninety days from such date, and

in the case of an employee who completes one year of service after the date of commencement of these rules, ordinarily within thirty days of the completion of one year of service

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