Ours is a small company with 18 employees but not registered under any insurance scheme for gratuity. One of our employees has resigned and as per law is eligible for gratuity. Can the company pay direct to such employee or is it a must to be registered under any of the insurance companies for payment of Gratuity is my query. Appreciate your answers.
From India, Hyderabad
116From India, Hyderabad
Dear friend,
It is a statutory obligation on the part of every employer to have compulsory insurance u/s 4-A of the Payment of Gratuity Act,1972 in respect of gratuity payable to his employees. For complete details see the thread 3565 entitled Group Gratuity Scheme.
In the absence of Insurance Scheme, you should pay the gratuity directly to the employees on their termination of employment.
From India, Salem
It is a statutory obligation on the part of every employer to have compulsory insurance u/s 4-A of the Payment of Gratuity Act,1972 in respect of gratuity payable to his employees. For complete details see the thread 3565 entitled Group Gratuity Scheme.
In the absence of Insurance Scheme, you should pay the gratuity directly to the employees on their termination of employment.
From India, Salem
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