The Government of Karnataka on 10th January 2024 notified regarding the Karnataka Compulsory Gratuity Insurance Rules, 2024. The rules are made under the powers conferred by the Payment of Gratuity Act, 1972. The rules primarily focus on compulsory insurance for the payment of gratuity to eligible employees.
New employers and existing establishments are required to obtain a valid insurance policy from a recognized insurance company within specific timeframes and renewed periodically, register their establishments with the Controlling Authority, and provide details of the employees insured, along with any changes in the future.
The notification includes various forms for application, the option to continue existing insurance schemes, details of employees covered under compulsory insurance, and the register of establishments under compulsory insurance. Employers are mandated to comply with the provisions of the Act, exercise due diligence for on-time payment of premiums and ensure the fulfillment of their liabilities under the Act.
In summary, the Karnataka Compulsory Gratuity Insurance Rules, 2024, outline the mandatory requirements for employers to obtain insurance for the payment of gratuity to eligible employees and ensure compliance with the provisions of the Payment of Gratuity Act, 1972.
From India, Delhi
5New employers and existing establishments are required to obtain a valid insurance policy from a recognized insurance company within specific timeframes and renewed periodically, register their establishments with the Controlling Authority, and provide details of the employees insured, along with any changes in the future.
The notification includes various forms for application, the option to continue existing insurance schemes, details of employees covered under compulsory insurance, and the register of establishments under compulsory insurance. Employers are mandated to comply with the provisions of the Act, exercise due diligence for on-time payment of premiums and ensure the fulfillment of their liabilities under the Act.
In summary, the Karnataka Compulsory Gratuity Insurance Rules, 2024, outline the mandatory requirements for employers to obtain insurance for the payment of gratuity to eligible employees and ensure compliance with the provisions of the Payment of Gratuity Act, 1972.
From India, Delhi
Thank you for sharing the news of notification of section 4A(1) of the Payment of Gratuity Act by Karnataka state. Now all establishments covered by Payment of Gratuity Act are required to buy insurance policy or invest their gratuity amount in LIC or other approved insurers.
I have a query related to it. The notification has come from Karnataka government, right? In respect of establishments having branches in other states, the appropriate authority will be the Central Government, right? Then will this notification cover such establishments whose appropriate government is Central and the Controlling authority is the ALC (C)?
What will be the legal position for companies having branches outside Karnataka whose appropriate government is not the Karnataka State government but it is the Central Government?
From India, Kannur
I have a query related to it. The notification has come from Karnataka government, right? In respect of establishments having branches in other states, the appropriate authority will be the Central Government, right? Then will this notification cover such establishments whose appropriate government is Central and the Controlling authority is the ALC (C)?
What will be the legal position for companies having branches outside Karnataka whose appropriate government is not the Karnataka State government but it is the Central Government?
From India, Kannur
Dear Madhu T R Ji, This notification is valid for Companies having their Registered Office in the Jurisdiction of ROC, Karnataka. Regards Tikaram Chaudhry 9211637063
From India, Delhi
From India, Delhi
That means companies which have registered offices in other states but working in Karnataka and those which are not registered as 'companies' but as partnerships or proprietorship need not take insurance as mandated by section 4A(1)?
Can you please share the Rules ( Karnataka Compulsory Gratuity Insurance Rules, 2024) here? Under the similar Rules framed by Andhra Pradesh, no such mention about ROC was mentioned. Can you please clarify?
From India, Kannur
Can you please share the Rules ( Karnataka Compulsory Gratuity Insurance Rules, 2024) here? Under the similar Rules framed by Andhra Pradesh, no such mention about ROC was mentioned. Can you please clarify?
From India, Kannur
If you refer to Sub-Section 1 of Section 4A of The Payment of Gratuity Act 1972 which produced below:-
“(1) With effect from such date as may be notified by the appropriate Government in this behalf,
every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government,
shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India Act, 1956 (31of 1956) or any other prescribed insurer”
In the above subsection the line “every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government”
in the current scenario, it is the Karnataka Government. For further information you may call me at 9211637063.
From India, Delhi
“(1) With effect from such date as may be notified by the appropriate Government in this behalf,
every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government,
shall, subject to the provisions of sub-section (2), obtain an insurance in the manner prescribed, for his liability for payment towards the gratuity under this Act, from the Life Insurance Corporation of India established under the Life Insurance Corporation of India Act, 1956 (31of 1956) or any other prescribed insurer”
In the above subsection the line “every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government”
in the current scenario, it is the Karnataka Government. For further information you may call me at 9211637063.
From India, Delhi
“Every employer, other than an employer or an establishment belonging to, or under the control of, the Central Government or a State Government” does not mean establishment the appropriate authority is central government but only means establishment of the government, whether state government or central government and establishments having control of these governments. But private establishments are not establishments under the control of state or central governments. My question is whether this notification applies to establishments the appropriate authority is the central? In respect of Companies having branches outside Karnataka, the appropriate government will obviously be Central government but it need not be an establishment of or controlled by the central government. Moreover, there are companies in karnataka whose head office or registered office is in other states. Will that branch offices come under this notification?
Please note that this topic is posted here for discussion and for awareness to the entire HR people. It is not for my personal gain that I am raising a query here. The basic purpose of this forum is also sharing knowledge among the beneficiaries. Anybody can contribute o this group and participate in the discussion. Therefore, it is expected that knowledge is shared in the open forum itself and not though telephone to a particular person. I hope all would agree to me. If I am wrong, I will withdraw my post.
From India, Kannur
Please note that this topic is posted here for discussion and for awareness to the entire HR people. It is not for my personal gain that I am raising a query here. The basic purpose of this forum is also sharing knowledge among the beneficiaries. Anybody can contribute o this group and participate in the discussion. Therefore, it is expected that knowledge is shared in the open forum itself and not though telephone to a particular person. I hope all would agree to me. If I am wrong, I will withdraw my post.
From India, Kannur
I agree with your opinion and would like to inform all members that if there is any contract or instrument by which Employer is under the control to abide by of the Karnataka Government w.r.t. to Employee Benefits then Karnataka Compulsory Gratuity Insurance Rules, 2024 will be applicable to such entities.
From India, Delhi
From India, Delhi
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AP Compulsory Gratuity Insurance Rule 2011- Notification.pd f