Assessing the applicability of the enactment
Preparation of notice of opening
Advising on gratuity trust and its formation
Advising on obtaining gratuity policy
Advising on preparation of various notices, abstracts etc.
An employee expects and deserves, as a matter of right, some reward when he retires after a long meritorious service. The enactment of the Payment of Gratuity Act, 1972 has fulfilled this expectation of an employee. Under the Act an employee becomes entitled to earn gratuity after putting in continues service of minimum five years (except in death and disablement due to accident / disease). When employee dies while in service his nominee or heirs are entitled to get gratuity even if the employee had put in less than 5 years’ service. The amount of gratuity is restricted to Ten Lakhs rupees
Every factory as define in factories Act
Every shop or commercial establishment in which 10 or more persons are employed
Gratuity is payable on the basis of last drawn salary
Notice of opening need to be submitted
Nomination form need to be obtained
It is advisable to have gratuity policy
Abstract and other notices need to be displayed on the notice board
Payment of gratuity to employees is compulsory, employee can apply / appeal to authorities