Background
The Payment of Gratuity (Delhi) Rules, 1973 were notified to implement the Payment of Gratuity Act, 1972 within the Union Territory of Delhi. 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 Delhi.
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
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.
(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 the officer with designation authorised by the employer to receive on his behalf notices under the Act or the Rules.
(2) A fresh notice shall be displayed immediately after the notice referred to in Sub-rule (1) becomes illegible or requires a change.
The employer must clearly display a notice at the main entrance in English and a language understood by most employees, naming the officer authorized to receive notices on his behalf under Act/rules. A new notice to be put up if the original becomes illegible or needs 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 gratuity payable under the Act shall be paid in cash or, if so desired by the payee, in demand draft or bank cheque to the eligible employee, nominee or legal heir, as the case may be.
In case the eligible employee, nominee or legal heir, as the case may be, so desires and the amount of gratuity payable is less than one thousand rupees, payment may be made by postal money order after deducting the postal money order commission therefor from the amount payable.
The intimation about the details of payment shall also be given by the employer to the controlling authority of the area.
The employer shall display an abstract of the Act and the rules made thereunder in English and in the language understood by the majority of the employees at a conspicuous place at or near the main entrance of the establishment.
Amount of gratuity payable shall be paid within 30 days of the date of receipt of application for payment.
Penalties & Punishments
U/s 9(1): Whoever, for the purpose of avoiding any payment to be made by himself under this Act or of enabling any other person to avoid such payment, knowingly makes or causes to be made any false statement or false representation shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees, or with both.
U/s 9(2): 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
Proviso to Section 9(2): where the offence relates to non-payment of any gratuity payable under this Act, the employer shall be punishable with imprisonment for a term which shall not be less than [six months but which may extend to two years] unless the court trying the offence, for reasons to be recorded by it in writing, is of opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice.
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