Dear Team,

I require your guidance as per Clause 7(1) of the Payment of Gratuity Act which states, "Intimation to the controlling authority regarding payment of gratuity to be given."

We are currently disbursing gratuity to eligible employees within the specified regulations by obtaining Form-I and Form-L. Is it mandatory to regularly inform the controlling authority, or is it only necessary in case of a dispute regarding the determination of the gratuity amount?

Thank you for your assistance.

From India, Nagar
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Intimating the payment of gratuity every time is not required. Even collecting Form I from the employee is not ordinarily required when the employer is paying the gratuity on time and it is not being challenged. The employer is liable to pay it even if the employee has not asked for it. Section 4 mandates that it is payable. Therefore, the employee does not need to request Form I for gratuity. However, when the gratuity is paid, as a token of acceptance, we collect an acknowledgment in Form L. There is no need to send the communication to the Controlling Authority. It is required only when there is a dispute, and the Controlling Authority directs the employer to determine and pay the gratuity.
From India, Kannur
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