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Gratuity Act
The Gratuity Act is a labour law that provides for the payment of gratuity to employees as a retirement benefit after completing a minimum period of service. Gratuity is a lump sum payment made to an employee as a token of appreciation for their services and as a means of financial assistance after retirement or termination of employment.
Kaizen Consultancy provides Gratuity Act Consultant in Mumbai which include Calculating Gratuity payment, distribution, Compliance, etc.
Applicability of Gratuity Act, 1972
The Payment of Gratuity Act, 1972 (Gratuity Act) applies to the following enterprises in India:
Criteria | Applicability |
Number of Employees | Establishments employing 10 or more persons |
Industry Sectors | Factories, Mines, Plantations, Ports, Railway Companies, Shops, and Establishments as notified by the Central Government |
Tenure of Service | Employees who have completed 5 years or more of continuous service |
Overview of Gratuity Act, 1972
The Gratuity Act is a labour law that provides for the payment of gratuity to employees as a retirement benefit after completing a minimum period of service. Gratuity is a lump sum payment made to an employee as a token of appreciation for their services and as a means of financial assistance after retirement or termination of employment.
Our Services
Hassle-free Labour Law | Gratuity Compliance in Mumbai
Brief Overview of Gratuity Act
The key aspects of the Gratuity Act include:
- Eligibility Criteria: Employees who have completed 5 years or more of continuous service are eligible for gratuity payment.
- Calculation of Gratuity: Gratuity is calculated based on the employee's last drawn wages and the number of years of service.
- Maximum Gratuity: The maximum gratuity payable is limited to ₹20 lakhs.
- Payment of Gratuity: Gratuity must be paid within 30 days from the date of retirement, resignation, or termination of employment.
- Nominee Designation: Employees can nominate one or more persons to receive the gratuity in case of their death.
Penalties for Non-Compliance with Gratuity Act
Failure to comply with the Gratuity Act can result in various penalties, including:
- Late Payment of Gratuity: Employers may be required to pay interest and damages for delayed gratuity payments.
- Non-Payment of Gratuity: Employers may face imprisonment and/or fines for not paying the required gratuity.
- Failure to Maintain Records: Employers may be penalized for not maintaining proper records and documentation related to gratuity calculations.
Gratuity Act Compliances: What We Do?
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Ensuring Compliance with the Gratuity Act: We help establishments comply with the Gratuity Act by handling various compliances, including gratuity calculations, maintaining records, and filing necessary forms.
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Calculating Gratuity Payments: We accurately calculate gratuity payments for eligible employees, ensuring compliance with the statutory formula and regulations.
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Facilitating Gratuity Distribution: We assist establishments in the timely distribution of gratuity payments to eligible employees, adhering to the prescribed time limits.
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Providing Advisory Services on Gratuity-related Matters: Our team of experts offers valuable advice and guidance on gratuity-related matters, ensuring that establishments are aware of their obligations and entitlements.
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Representing Clients before Authorities: We represent our clients before labour authorities, handling inquiries, disputes, and legal proceedings related to gratuity payments, if necessary.
How we Help?
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Gratuity Payment Register
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Gratuity Calculation Statements
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Nomination Forms for Gratuity
Frequently Asked Questions
The Gratuity Act is a labour law that provides for the payment of gratuity to employees as a retirement benefit after completing a minimum period of service. It is important because it ensures financial assistance and appreciation for employees’ services upon retirement or termination of employment.
Employees who have completed 5 years or more of continuous service are eligible for gratuity payments.
Gratuity is calculated based on the employee’s last drawn wages and the number of years of service.
The maximum gratuity payable is limited to ₹20 lakhs.
We offer services such as compliance audits, factory registration and licensing, policy development, employee awareness programs, advisory services, and representation in legal proceedings and dispute resolution.
Why Kaizen Consultancy Services?
At Kaizen Consultancy Services, we pride ourselves on being a trusted partner for organizations seeking to ensure compliance with the Factory Act, 1948. Here are some key reasons to choose our services:
Ensuring Regulatory Compliance
We help you navigate the complexities of the Gratuity Act and maintain compliance, avoiding potential penalties.
Accurate Gratuity Calculations
We ensure that gratuity payments are accurately calculated based on the statutory formula, preventing overpayments or underpayments.
Streamlining Gratuity Processes
We handle all Gratuity Act -related tasks, from calculations to distribution, allowing you to focus on your core business activities
Accessing Expert Guidance
Our team of gratuity specialists provides valuable insights and advice to help you make informed decisions.
Gratuity Act Consultant in Mumbai: Why Us?
At Kaizen Consultancy Services, we pride ourselves on being the leading Gratuity Act, PF and ESIC consultant in Mumbai, offering the following advantages:
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Our team has years of expertise in the Gratuity Act, ensuring accurate and reliable services.
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We are committed to delivering prompt and efficient assistance to our clients, ensuring their satisfaction.
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We tailor our services to meet the unique needs of each of our clients, providing specialised solutions.
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We offer our services at competitive rates, providing excellent value for your investment.
If you're an enterprise in Mumbai looking to ensure compliance with the Gratuity Act, 1972, compliance with Act in best possible way, contact the expert team of Kaizen Consultancy Services in Mumbai.
Call us at +91-977 31 50 167 to schedule a consultation and learn how we can assist your business.