Compulsory Gratuity Insurance Rules, 2024
- January 10, 2024
- Posted by: AscentHR
- Categories: Karnataka, Notification
![thumbnail for government notifications](https://ascent-hr.com/wp-content/uploads/2023/08/Notifications.webp)
The Government of Karnataka, vide notification No. LD 397 LET 2023, dated 10th January 2024, has published the Karnataka Compulsory Gratuity Insurance Rules, 2024. The said rule has been passed by the State government via exercising the power conferred under sub-section (4) of Section 4A of the Payment of Gratuity Act, 1972.
Section 4 of the Payment of Gratuity Act, 1972 speaks about “Compulsory insurance,” and accordingly sub-section (4) of section 4 reads as below:
“The appropriate Government may, by notification, make rules to give effect to the
provisions of this section and such rules may provide for the composition of the
Board of Trustees of the approved gratuity fund and for the recovery by the
controlling authority of the amount of the gratuity payable to an employee from
the Life Insurance Corporation of India or any other insurer with whom an
insurance has been taken under sub-section (1), or as the case may be, the Board
of Trustees of the approved gratuity fund”
Other salient features of the Karnataka Compulsory Gratuity Insurance Rules, 2024 are as under:
- Every new employer (establishment commencing its business after passing of this rule), unless exempted because of already having approved gratuity fund (under sub-section 2 of 4A), within 30 days from the date on which these rules become applicable to such establishment shall obtain a valid insurance policy for his liability for payment towards gratuity of all eligible employees under the Act from LIC or any other insurance company which are recognised under this rule.
- The employer of an establishment which is in existence at the time of commencement of these rules shall obtain a valid insurance policy within sixty days from the date of commencement of these rules.
- Periodical renewal of insurance policy should be intimated to the controlling authority within 15 days of the renewal.
- Within thirty days from the date of obtaining insurance, every employer shall submit an application to get his establishment registered in Form- I to the controlling authority.
- At the time of registration, the employer shall furnish the details of employees insured, in Form III to the controlling authority. Any changes in the furnished information at the time of registration are also to be submitted consequently.
- An employer who has already established an approved gratuity fund can continue the same by submitting an application in Form- II to the controlling authority.
- Every employer who has already established an approved gratuity trust shall register the Gratuity Trust with the registration authority notified under provisions of the Indian Trust Act, 1882 or any other applicable law.
Employers are advised to take the above into notice and make necessary arrangements to obtain the Group Gratuity Scheme for Insurance.
Please refer to the below press note for more details:
Other Resources
Get Email Alerts
Subscribe to receive government notification alerts to your inbox
Error: Contact form not found.