Rajasthan Payment of Gratuity Rules, 1973

Background

The Rajasthan Payment of Gratuity Rules, 1973 were notified to implement the Payment of Gratuity Act, 1972 within the State of Rajasthan. 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 Rajasthan.

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

  • Form A: Notice of Opening to Controlling Authority (Rule 3(1))

Within 30 days of opening of an establishment, a notice in Form “A” shall be submitted by the employer to the controlling authority of the area.

  • Form B: Notice of Change to Controlling Authority (Rule 3(2))

Within 30 days of change in the name, address, employer or nature of business of the establishment, a notice in Form “B” shall be submitted by the employer to the controlling authority of the area.

  • Notice for Payment of Gratuity (Form L/M) (Rule 8)

Within 15 days of receipt of an application for payment of gratuity, the employer shall issue the notice to the concerned employee as follows –

    1. Form L: If the claim is found admissible
    2. Form M: If the claim is not found admissible
  • Display of Notice by employer covered under Rajasthan Payment of Gratuity Rules (Rule 4(1))

A Notice is required to be displayed conspicuously specifying the name of the officer with designation authorised by the employer to receive on his behalf notices, under the Act or the rules

  • Display of abstract of Act and Rajasthan Payment of Gratuity Rules (Rule 20)

The employer shall display an abstract of the Act and the rules made thereunder in English and in the language under stood by the majority of the employees at a conspicuous place at or near the main entrance of the establishment.

  • Gratuity payable by Employer in Rajasthan (Section 4(2))

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
    2. In the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of seven days’ wages for each season.
    3. In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.
    4. Amount of gratuity not to exceed amount notified by Government
  • Nomination Form by Employee in Rajasthan (Section 6; Rule 6 of Payment of Gratuity (Central) Rules, 1972)

Each employee, who has completed one year of service, shall make, within such time, in such form and in such manner, as may be prescribed, nomination for the purpose of the second proviso to sub-section (1) of section 4.

    1. a) 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 and the other copy of the nomination shall be recorded.
    2. b) An employee who has no family at the time of making a nomination shall, within ninety days of requiring a family submit in the manner specified in sub-rule (1), a fresh nomination as required under sub-section (4) of Section 6, in duplicate in Form “G” to the employer, and thereafter the provisions of sub-rule (2) apply mutus mutandis as if it was made under sub-rule (1).
    3. c) A notice of modification of a nomination including cases where a nominee predeceases an employee shall be submitted in duplicate in Form “H” to the employer in the manner specified in sub-rule (1) and thereafter the provisions of sub-rule (2) shall apply mutoci.s mutandi.s if it was made under sub-rule (1).

Penalties & Punishments

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 Rajasthan 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

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article. 

To stay updated Subscribe to our newsletter today

Explore other Legal updates on the 1-Comply and follow us on LinkedIn to stay updated 

Post Views: 29

Schedule A Demo