COMPLIANCES UNDER THE ACT :
The establishment must ensure following compliances under the Act. These compliances are not exhaustive but illustrative.
1. The Establishment has observed the following while paying the gratuity to the persons who are entitled to it:
(a) It has paid gratuity at the rate of fifteen days wages for every completed year of service or part thereof in excess of six months, calculated on the rates of wages last drawn by the employee concerned. Since the employees of the establishment are monthly rated employees, the fifteen days wages were calculated by dividing the monthly rates of wages drawn by him by twenty-six and multiplying the quotient by fifteen.
OR
Since the employees were employed on piece rate basis, the gratuity was paid at the rate of fifteen days wages for every completed year of service calculated at an average total wages during a period of three months immediately preceding the termination of employment.
OR
Since the Registered Establishment is a seasonal establishment, gratuity was paid at the rate of seven days for each season.
(b) In the event of death or disablement of any employee due to accident or disease, the gratuity was paid without the requirement of five years of continuous service.
(c) In the event of death, the gratuity was paid to nominees or legal heir(s) or where the person entitled was a minor, the gratuity was deposited with the Controlling Authority.
(d) The maximum amount of gratuity paid to any employee did not exceed Rs. 10,00,000/-.
2. The Establishment made deductions from the gratuity in respect of those employees who were liable for any act, wilful omission or negligence, which caused damages or loss to, or destruction of, property of the Registered Establishment. The total deductions were only to the extent of loss or damages so caused.
3. The Establishment also made deductions from the gratuity in respect of an employee whose services were terminated for an offence involving moral turpitude.
4. The Establishment has paid its liability under PGA within thirty days from the date it became payable.
5. The Establishment has deposited with the Controlling Authority the liability under PGA to the extent admitted by it, which was disputed by the person entitled to it. The Establishment has, accordingly, made application to the Controlling Authority for the settlement of dispute.
6. (a) The Establishment sent Notice to the person entitled to gratuity under the PGA within fifteen days from the date of receipt of application for gratuity from such person with the directions to collect the gratuity within thirty days from the date of receipt of application.
(b) Where the Establishment did not admit its liability under the PGA, it has specified the reasons for the same
(c) Copies of Notices under clause (a) and (b) were also endorsed to the Controlling Authority.
7. The liability of gratuity was settled in cash or at the request of the person claiming by Demand Draft or Banker’s Cheque. Where the amount of gratuity was less than Rs. 1,000/-, the same was sent by Postal Money Order. The Controlling Authority was given details of all payments made.