Background
The Payment of Gratuity (Gujarat) Rules, 1973 were notified to implement the Payment of Gratuity Act, 1972 within the State of Gujarat. These rules lay down the procedure for employers and employees in matters of gratuity, including the format for notices, timelines for applications, methods of calculation, and the role of the Controlling Authority. The purpose is to ensure uniformity and clarity in gratuity administration across establishments in Gujarat.
Applicability
It shall apply to –
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, or, any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf
Note: A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.
Compliance requirement under the Rules in Accordance with the Act
Every employer of an establishment shall, within thirty days from the date such rules become applicable submit a notice in Form A to the Controlling Authority.
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.
Amount of gratuity payable shall be paid within 30 days of the date of receipt of application for payment.
For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days’ wages based on the rate of wages last drawn by the employee concerned.
Penalties & Punishments
Penalty in Act: Contravention of any prov of Act/Rule is punishable with imprisonment for a term not less than 3 mnths which may extend to 1 year or fine not less than Rs. 10,000 which may extend to Rs. 20,000 or with both.
Conclusion
The Gujarat Rules provide a structured compliance framework for gratuity management, ensuring employees receive their entitled benefits in a timely manner while also guiding employers in fulfilling their statutory obligations. Proper adherence to these rules safeguards both employer accountability and employee rights
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