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