In exercise of the powers conferred by
sub-section (1) of Section 15 of the Payment of Gratuity Act, 1972 (Central Act
39 of 1972), the Government of Karnataka hereby makes the following rules, namely:-- (1)
These Rules may be called the Payment of
Gratuity (Karnataka) Rules, 1973. (2)
They shall come into force at once. In these rules, unless there is
anything repugnant in the subject or context,-- (i)
"Act" means the Payment of Gratuity
Act, 1972; (ii)
"Appellate Authority" means the
State Government or the authority specified under sub-section (7) of Section 7; (iii)
"Form" means a form appended to
these Rules; (iv)
"Nomination" means nomination made
under Section 6; (v)
"Section" means a Section of the
Act. (1)
Within 30 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. (2)
A notice in Form 'B' shall be submitted by
the employer to the Controlling Authority of the area within 30 days of any
change in the name, address, employer or nature of business. (3)
Where an employer intends to close down the
business, he shall submit a notice in Form 'C to the Controlling Authority of
the area at least 60 days before the intended closure. (1)
The employer shall display conspicuously a
notice at or near the main entrance of the establishment in bold letters in
Kannada and in the 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 above in sub-rule (1), becomes illegible or
requires a change. (1)
A notice under the proviso to sub-clause (ii)
of clause (h) of Section 2, shall be in Form 'D' and sent in triplicate by the
employee to the employer, who shall, after recording its receipt on one copy
thereof, return the copy to the employee and send the second copy to the
Controlling Authority of the area. (2)
An employee may withdraw the notice referred
to in sub-rule (1), by giving another notice in triplicate in Form 'E' to the
employer, who shall follow the same procedure as in sub-rule (1). (1)
A nomination shall be in Form 'F' and
submitted in duplicate by personal service by the employee, after taking proper
receipt or by sending through Registered Post Acknowledgment Due to the
employer: (i)
In the case of an employee who is already in
employment for a year or more on the date of commencement of these rules,
ordinarily, within 90 days from such date, and (ii)
In the case of an employee who completes one
year of service after the date of commencement of these rules, ordinarily,
within 30 days of the completion of one year of service: Provided that nomination in Form 'F'
shall be accepted by the employer after the specified period and if filed with
reasonable grounds for delay, and no nomination so accepted shall be invalid
merely because it was filed after the specified period. (2)
Within 30 days of the receipt of a nomination
in Form 'F' under sub-rule (1), 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. (3)
An employee who has no family at the time of
making a nomination shall, within 90 days of acquiring 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), shall apply mutatis mutandis as if
it was made under sub-rule (1). (4)
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 mutatis mutandis as
if it was made under sub-rule (1). (5)
A nomination or a fresh nomination or a
notice of modification of nomination shall be signed by the employee, or, if
illiterate, shall bear his thumb impression, in the presence of two witnesses,
who shall also sign a declaration to that effect in the nomination, fresh
nomination or notice of modification of nomination, as the case may be. (6)
A nomination, fresh nomination or notice of
modification of nomination, shall take effect from the date of receipt thereof
by the employer. (1)
An employee who is eligible for payment of gratuity
under the Act, or any person authorised, in writing, to act on his behalf shall
apply, ordinarily within thirty days from the date the gratuity became payable,
in Form 'I' to the employer: Provided that where the date of
superannuation or retirement of an employee is known, the employee may apply to
the employer before thirty days of the date of superannuation or retirement. (2)
A nominee of an employee who is eligible for
payment of gratuity under the second proviso to sub-section (1) of Section 4
shall apply, ordinarily within thirty days from the date the gratuity became
payable to him, in Form 'J' to the employer: Provided that an application in plain
paper with relevant particulars shall also be accepted. The employer may obtain
such other particulars as may be deemed necessary by him. (3)
A legal heir of an employee who is eligible
for payment of gratuity under the second proviso to sub-section (1) of Section
4 shall apply, ordinarily within one year from the date the gratuity became
payable to him, in Form 'K' to the employer. (4)
Where gratuity becomes payable under the Act
before the commencement of these rules, the periods of limitation specified in
sub-rules (1), (2) and (3) shall be deemed to be operative from the date of
such commencement. (5)
An application for payment of gratuity filed
after the expiry of the periods specified in this rule shall also be
entertained by the employer, if the applicant adduces sufficient cause for the
delay in preferring his claim, and no claim for gratuity under the Act shall be
invalid merely because the claimant failed to present his application within
the specified period. Any dispute in this regard shall be referred to the
Controlling Authority of the area for his decision. (6)
An application under this rule shall be
presented to the employer either by personal service or by all registered post
acknowledgment due. (1)
Within fifteen days of the receipt of an
application under Rule 7 for payment of gratuity, the employer shall,-- (i)
if the claim is found admissible on
verification, issue a notice in Form 'L' to the applicant employee, nominee or
legal heir, as the case may be, specifying the amount of gratuity payable and
fixing a date, not being later than the thirtieth day after the date of receipt
of the application, for payment thereof; or (ii)
if the claim for gratuity is not found
admissible, issue a notice in Form 'M' to the applicant employee, nominee or
legal heir, as the case may be, specifying the reasons why the claim for gratuity
is not considered admissible. In either case a copy of the notice
shall be endorsed to the Controlling Authority of the area. (2)
In case payment of gratuity is due to be made
in the employer's office, the date fixed for the purpose in the notice in Form
'L' under clause (i) of sub-rule (1), shall be refixed by the employer, if a
written application in this behalf is made by the payee explaining why it is
not possible for him to be present in person on the dates specified. (3)
If the claimant for gratuity is a nominee or
legal heir, the employer may ask for such witness or evidence as may be deemed
relevant for establishing his identity or maintainability of his claim, as the
case may be. In that case the time limit specified for issuance of notice under
sub-rule (1) shall be operative with effect from the date such witness or
evidence, as the case may be, called for by the employer is furnished to the
employer. (4)
A notice in Form 'L' or Form 'M' shall be
served on the applicant either by personal service after taking receipt or by
registered post with acknowledgment due. (5)
A notice under sub-section (2) of Section 7
shall be in Form 'L'. 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: Provided that 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: Provided further that intimation about
the details of payment shall also be given by the employer to the Controlling
Authority of the area. (1)
If an employer,-- (i)
refuses to accept a nomination or to
entertain an application sought to be filed under Rule 7, or (ii)
issues a notice under sub-rule (1) of Rule 8 either
specifying an amount of gratuity which is considered by the applicant less than
what is payable or rejecting eligibility to payment of gratuity, or (iii)
having received an application under Rule 7
fails to issue any notice as required under the Rule 8 within the time
specified therein, the claimant employee, nominee, or legal heir, as the case
may be, within ninety days of the occurrence of the cause for the application,
apply in Form 'N' to the Controlling Authority having jurisdiction over the
area for issuing a direction under sub-section (4) of Section 7 with as many
extra copies as there are opposite parties: Provided that the Controlling
Authority may accept any application under this sub-rule, on sufficient cause
being shown by the applicant, after the expiry of the specified period. (2)
Application under sub-rule (1) and other
documents relevant to such an application shall be presented in person to the
Controlling Authority or shall be sent by registered post acknowledgment due. (1)
On receipt of an application under Rule 10,
the Controlling Authority shall, by issuing a notice in Form 'O', call upon the
applicant as well as the employer to appear before him on a specified date,
time and place, either by himself or through his authorised representative
together with all relevant documents and witnesses, if any. (2)
Any person desiring to act on behalf of an
employer or employee, nominee, or legal heir, as the case may be, shall present
to the Controlling Authority a letter of authority from the employer or the
person concerned, as the case may be, on whose behalf he seeks to act together
with a written statement explaining his interest in the matter and praying for
permission so to act. The Controlling Authority shall record thereon an order
either according his approval or specifying, in the case of refusal to grant
the permission prayed for, the reasons for refusal. (3)
A party appearing by an authorised
representative shall be bound by the acts of the representative. (4)
After a completion of hearing on the date
fixed under sub-rule (1), or after such further evidence, examination of
documents, witnesses, hearing and enquiry, as may be deemed necessary, the
Controlling Authority shall record his finding as to whether any amount is
payable to the applicant under the Act. A copy of the finding shall be given to
each of the parties. (5)
If the employer concerned fails to appear on
the specified date of hearing after due service of notice without sufficient
cause, the Controlling Authority may proceed to hear and determine the
application ex parte. If the applicant fails to appear on the specified date of
hearing without sufficient cause, the Controlling Authority may dismiss the
application: Provided that an order under this
sub-rule may, on good cause being shown within thirty days of the said order,
be reviewed and the application reheard after giving not less than fourteen
days notice to the opposite party of the date fixed for rehearing of the
application. The sittings of the Controlling
Authority shall be held at such times and at such places as he may fix and he
shall inform the parties of the same in such manner as he thinks fit. The Controlling Authority may
authorise a clerk of his office to administer oaths for the purpose of making
affidavits. The Controlling Authority may, at any
stage of the proceedings before him, either upon or without an application by
any of the parties involved in the proceedings before him, and on such terms as
may appear to the Controlling Authority just, issue summons to any person in
Form 'P' either to give evidence or to produce documents or for both purposes,
on a specified date, time and place. (1)
Subject to the provisions of sub-rule (2),
any notice, summons, process or order issued by the Controlling Authority may
be served either personally or by registered post acknowledgment due or in any
other manner as prescribed under the Code of Civil Procedure, 1908 (5 of 1908). (2)
Where there are numerous persons as parties
to any proceedings before the Controlling Authority and such persons are
members of any trade union or association or are represented by an authorised
person, the service of notice on the Secretary, or where there is no Secretary,
on the principal officer of the trade union or association, or on the
authorised person shall be deemed to be service on such persons. (1)
The Controlling Authority shall record the
particulars of each case under Section 7, in Form 'Q' and at the time of
passing orders shall sign and date the particulars so recorded. (2)
The Controlling Authority shall, while
passing orders in each case, also record the findings on the merits of the case
and file it together with the memoranda of evidence with the order sheet. (3)
Any record, other than a record of any order
or direction, which is required by these rules to be signed by the Controlling
Authority, may be signed on behalf of and under the direction of the
Controlling Authority, by any subordinate officer appointed in writing for this
purpose by the Controlling Authority. If a finding is recorded under
sub-rule (4) of Rule 11 that the applicant is entitled to payment of gratuity
under the Act, the Controlling Authority shall issues a notice to the employer
concerned in Form 'R' specifying the amount payable and directing payment
thereof to the applicant under intimation to the Controlling Authority within
thirty days from the date of receipt of the notice by the employer. A copy of
the notice shall be endorsed to the applicant employee, nominee or legal heir,
as the case may be. (1)
The Memorandum of Appeal under sub-section
(7) of Section 7 of the Act, shall be submitted to the appellate authority with
a copy thereof to the opposite party and the Controlling Authority either
through delivery in person or under registered post acknowledgement due. (2)
The Memorandum of Appeal shall contain the
facts of the case, the decision of the Controlling Authority, the grounds of
appeal and the relief sought. (3)
There shall be appended to the Memorandum of
Appeal a certified copy of the finding of the Controlling Authority and
direction for payment of gratuity. (4)
On receipt of the copy of Memorandum of
Appeal, the Controlling Authority shall forward records of the case to the
Appellate Authority. (5)
Within 14 days of the receipt of the copy of
Memorandum of Appeal, the opposite party shall submit, his comments on each
paragraph of the memorandum with additional pleas, if any, to the Appellate
Authority with a copy to the appellant. (6)
The Appellate Authority shall record its
decision after giving the parties to the appeal a reasonable opportunity of being
heard. A copy of the decision shall be given to the parties to the appeal and a
copy thereof shall be sent to the Controlling Authority returning his records
of the case. (7)
The Controlling Authority shall, on receipt
of the decision of the Appellate Authority, make necessary entry in the records
of the case maintained in Form 'Q' under sub-rule (1) of Rule 16. (8)
On receipt of the decision of the Appellate
Authority, the Controlling Authority shall, if required under that decision,
modify his direction for payment of gratuity and issue a notice to the employer
concerned in Form 'S' specifying the modified amount payable and directing
payment thereof to the applicant, under intimation to the Controlling Authority
within 15 days of the receipt of the notice by the employer. A copy of the
notice shall be endorsed to the applicant employee, nominee or legal heir, as
the case may be, and to the Appellate Authority. Where an employer fails to pay the
gratuity due under the Act in accordance with the notice by the Controlling
Authority under Rule 17 or Rule 18, as the case may be, the employee concerned,
his nominee or legal heir, as the case may be, to whom the gratuity is payable
may apply to the Controlling Authority in duplicate in Form 'V for recovery
thereof under Section 8 of the Act. The employer shall display an abstract
of the Act and the Rules made thereunder in Kannada and in the language
understood by the majority of the employees at a conspicuous place at or near
the main entrance of the establishment.[1]THE KARNATAKA PAYMENT OF GRATUITY RULES, 1973
PREAMBLE