Background
The Uttar Pradesh Payment of Gratuity Rules, 1975 were notified to implement the Payment of Gratuity Act, 1972 within the State of Uttar Pradesh. 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 Uttar Pradesh.
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
Every employer of a factory, shop, establishment, or plantation shall, within thirty days from the date such rules become applicable, submit a notice in Form A to the Controlling Authority.
The Payment of Gratuity Act, 1972 applies to: (a) every factory, mine, oilfield, plantation, port, and railway company; (b) every shop or establishment within the meaning of any law in force relating 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; and (c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify.
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 a factory, plantation, shop, or establishment in bold letters in Hindi 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 notices under the Act or the rules. A fresh notice shall be displayed immediately after the existing one becomes illegible or requires a change.
Within fifteen days of receipt of an application for payment of gratuity, the employer shall issue notice to the concerned employee as follows:
Form L, if the claim is found admissible; or Form M, if the claim is not found admissible.
The amount of gratuity payable shall be paid within thirty days of the date of receipt of application for payment.
Every employer shall display an abstract of the Act and of these rules in Hindi and in a language understood by the majority of the employees at a conspicuous place at or near the main entrance of the factory, plantation, shop, or establishment, as the case may be.
Penalty & Punishment
Contravention of any provision of Act/Rule is punishable with imprisonment for a term not less than 3 months which may extend to 1 year or fine not less than Rs. 10,000 which may extend to Rs. 20,000 or with both.
Conclusion
The Uttar Pradesh 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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