Compliance Requirements under the Rules in Accordance with the Code

1. Deposit of Gratuity for Minor Nominee/Heir (Section 53(1), Rule 51)

In the case of nominee, or an heir, who is minor, the Competent Authority shall invest the gratuity amount deposited with him for the benefit of such minor in term deposit with the State bank of India or Nationalized Bank

Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years,—

(a) on his superannuation; or

(b) on his retirement or resignation; or

(c) on his death or disablement due to accident or disease; or

(d) on termination of his contract period under fixed term employment; or

(e) on happening of any such event as may be notified by the Central Govt.

Provided that in case of working journalist as defined in clause (f) of section 2 of the Working Journalists and Other Newspaper Employees (Condition of Service) and Miscellaneous Provisions Act, 1955, the expression “5 years” occurring in this sub-section shall be deemed to be 3 years:

Provided further that the completion of continuous service of 5 years shall not be necessary where the termination of the employment of any employee is due to death or disablement or expiration of fixed term employment or happening of any such event as may be notified by the CG.

2. Form XI: Nomination Form for Gratuity in U.P. (Section 55(1), Rule 52(1) &(3))

Employees to submit a nomination in Form XI in duplicate either in person with a receipt, by regd. post or electronically:

1. 1. If an employee has a family at the time of making a nomination, the nomination shall be made in favour of one or more members of his family, and any nomination made by such employee in favour of a person who is not a member of his family shall be void.
   2. If at the time of making a nomination the employee has no family, the nomination may be made in favour of any person or persons but if the employee subsequently acquires a family, such nomination shall forthwith become invalid and the employee shall submit fresh nomination within 90 days of acquiring family.

       3. Form XI: Verification of Nomination for Gratuity in U.P. (Section 55(4),(5), Rule 52(2))

After receipt of the application for nomination in Form-XI, the employer shall get the service particulars of the employee verified with reference to the record of the establishment within 30 days. He shall return to the employee,duplicate copy of the nomination Form-XI, duly attested either by employer or an officer authorized by him in this behalf as a token of recording of the nomination by the employer and the other copy of the nomination shall be recorded.

Nomination may be modified in accordance with section 55(3)&(4) by an employee at any time, after giving to his employer a written intimation in such form and in such manner as may be prescribed by the appropriate Government, of his intention to do so.

4. Form XI: Notice for Modified Nomination for Gratuity in U.P. (Section 55(4),(5), Rule 52(4),(5) &(6))

Notice of modification of a nomination, including cases where a nominee predeceases an employee, shall be submitted in duplicate in Form XI to the employer

1. 1. A Nomination/ a fresh nomination/ notice of modification of nomination shall be signed by the employee. And if the employee is illiterate, the said nomination shall bear his thumb-impression in the presence of 2 witnesses who shall also sign a declaration to that effect in the nomination, fresh nomination or notice of modification of nomination, as the case may be, and shall be submitted by the employee electronically or by registered post acknowledgement due.
   2. A nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.

     5. Form XII: Application for payment of Gratuity and time limit for payment (Section 56, Rule 53(1))

1) If the date of superannuation or retirement is known, the employee may apply for gratuity thirty days in advance

2) An employee on a fixed-term contract is eligible for gratuity after one year of service, paid at 15 days’ wages per completed year or part thereof beyond 6 months

3) A nominee eligible for gratuity must apply in Form-XII within thirty days from when gratuity becomes payable. Applications on plain paper with relevant details are also accepted

4) A legal heir eligible for gratuity must apply in Form-IV within one year from when gratuity becomes payable

5) For gratuity payable before these rules, the limitation periods start from the rules’ commencement

6) Late applications are accepted if the applicant shows sufficient cause. Disputes are referred to the competent authority

7) Applications can be submitted electronically, in person, or by registered post

6. Form XIII: Notice for payment of Gratuity (Section 56(2), Rule 53(2))

Within 15 days of receipt of an application for payment of gratuity, the employer shall issue the notice to the concerned employee in Form-XIII. If the claim is found admissible/If the claim is not found admissible. In the case of denial of gratuity a copy of the notice shall be shared electronically with the Director, General, Labour Bureau, Chandigarh.

7. Mode of payment of Gratuity (Rule 35(3), Rule 53(3))

The gratuity payable under the Code shall be paid through DD or by crediting in the bank account of the eligible employee, nominee or legal heir, as the case may be. Provided that intimation about the details of payment shall also be given by the employer to the competent authority of the area.

8. Form XIV: Application in case of Dispute in Gratuity (Section 56(5), Rule 55)

For dispute with regard to matter or matters as specified in section 56(5) of the Code the employer or employee or any other person eligible for payment of gratuity, may make an application to the competent authority in Form–XIV within 1 year from the date on which the gratuity becomes due.