Background
The Jammu & Kashmir Payment of Gratuity Rules, 1973 were notified to implement the Payment of Gratuity Act, 1972 within the State of J&K. 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 J &K.
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
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. 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.
The employer shall display conspicuously a notice at or near the main entrance of the establishment in bold letter in English and in a language understood by the majority of the employees specifying the name of the officer with designation authorised by the employer to receive on his behalf notices under the Act or these rules. A fresh notice shall be displayed immediately after the notice referred to in this sub- section becomes illegible or requires a change.
Within 15 days of receipt of an application for payment of gratuity, the employer shall issue the notice to the concerned employee as follows –
The employer shall display an abstract of the Act and the rules made thereunder as given in Form ‘U’ in English and in the language understood by the majority of the employees at conspicuous place at or near the main entrance of the establishment.
Within thirty days of the receipt of nomination in Form F , the employer shall get the service particulars of the employee, as mentioned in the form of nomination, verified with reference to the records of the establishment and return to the employee, after obtaining a receipt thereof. the duplicate copy of the nomination in form ‘F’ duly attested either by the employer or an officer authorised in this behalf by him, as a token of recording of the nomination by the employer.
An employee who has no family at the time of making a nomination shall, within ninety days of acquiring a family submit a fresh nomination as required under sub-section (4) of section 6 duplicate in Form “”G”” to the employer.
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
1.In the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account
Penalty & Punishment
An employer who contravenes, or makes default in complying with, any of the provisions of this Act or any rule or order made thereunder shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to one year, or with fine which shall not be less than ten thousand rupees but which may extend to twenty thousand rupees, or with both.
Conclusion
The J &K 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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