The Deputy Labor Commissioner Gujarat issued a notification on February 29, 2024 regarding the Filing of consolidated annual returns online on the website of the Labor Commissioner’s office. It is applicable for every establishments/
What does the ESI Scheme entail?
The Employees’ State Insurance Scheme in India is a comprehensive Social Security Scheme designed to offer socio-economic protection to employees in the organized sector. It aims to provide coverage against events such as sickness, maternity, disablement, and death resulting from employment injury. Additionally, the scheme ensures medical care for insured employees and their families.
How does the scheme benefit the employees?
The scheme offers comprehensive medical care to employees registered under the ESI Act, 1948, ensuring their well-being and the restoration of their health and working capacity during periods of incapacity. Additionally, it provides financial assistance to compensate for the loss of wages during abstention from work due to sickness, maternity, and employment injury. Furthermore, the scheme extends medical care to the family members of the registered employee.
What is the funding mechanism for the Scheme?
The ESI scheme operates as a self-financing system, with funds primarily derived from contributions made by employers and employees on a monthly basis. These contributions are calculated as a fixed percentage of the wages paid. Additionally, State Governments contribute 1/8th of the cost of Medical Benefit.
Area of Implementation
The ESI Scheme is rolled out in phases across various parts of the country through Gazette notifications. This process occurs after establishing the necessary infrastructure for the dispensation of medical and other benefits outlined in the provisions of the Act, ensuring accessibility to prospective beneficiaries.
Which establishments fall under the coverage of ESI in an area notified under Section 1(3) by the Central Government?
In areas notified under Section 1(3) by the Central Government, all factories where 10 or more persons are employed come under the coverage of Section 2(12) of the ESI Act. Additionally, establishments employing 10 or more persons in the following categories attract ESI coverage based on the notification issued by the appropriate Government (Central/State) under Section 1(5) of the Act:
(i) Shops
(ii) Hotels or restaurants not involved in manufacturing but engaged solely in ‘sales’.
(iii) Cinemas, including preview theatres;
(iv) Road Motor Transport Establishments;
(v) Newspaper establishments (not covered as a factory under Sec.2(12));
(vi) Private Educational Institutions (operated by individuals, trustees, societies, or other organizations) and Medical Institutions (including Corporate, Joint Sector, trust, charitable, and private ownership hospitals, nursing homes, diagnostic centre’s, pathological labs).
It’s worth noting that in some states, coverage extends to establishments with 20 or more persons employed under Section 1(5). Additionally, a few State Governments may not have included Medical and Educational Institutions within the scope of the scheme.
Which categories of personnel are mandatorily included in the ESIC deduction guidelines?
ESI fund managed by using ESIC, it’s miles mandatory for employees getting the income of Rs. 21,000 or much less in line with month to serve the cash advantage and medical blessings to the employee and their households.
What is the source of contribution and the share of ESIC deduction guidelines?
The ESIC vide notification has reduced the share of deduction, the contribution will be from corporation and employee as in step with the latest probabilities. An employee has to pay zero. Seventy five percent and the company has to pay 3.25 percent of the wages towards ESIC contribution.
What to do upon getting the ESIC registration?
After getting the registration the status quo has to file the month-to-month returns with the department. The last date to report the ESIC go back is the fifteenth day of every following month.
If there is no worker and the registration has been taken, then some other specific compliance?
If the organization has taken the registration and at any point in time there’s no employee in the business enterprise whose ESIC is deducted, then additionally the organization has to report NIL return.
What if go back now not stuffed or put off filling?
A company who does not pay the contribution quantity in the time limit shall be vulnerable to pay simple hobby at the charge of 12% in step with annum for each day till the default persists.
BENEFITS
What benefits are provided to the family members under the ESI Scheme?
(i) Family members are eligible for comprehensive medical care whenever required.
(ii) Family members are entitled to artificial limbs and appliances as part of their medical treatment.
(iii) Medical benefits are extended to the family during the period the insured person is receiving unemployment allowance. If the insured person passes away during this period, the family continues to receive medical benefits until the receipt of unemployment allowance.
(iv) In the event of the insured employee’s death due to employment injury, the widow, widowed mother, and children are entitled to Dependents’ benefit.
(v) Funeral expenses up to Rs. 10,000 are covered and will be reimbursed to any family member or person who actually incurs the expenditure on the funeral.
What benefits are provided to an Insured Person who ceases to be in insurable employment due to permanent disablement?
An Insured Person who is no longer in insurable employment due to permanent disablement caused by employment injury is eligible to receive medical benefits for themselves and their spouse. This benefit is provided upon payment of Rs. 120 for one year until the date on which the individual would have retired at the age of superannuation, had they not experienced such permanent disablement.
Vocational Rehabilitation programs, as per Rule 60, are also conducted for insured persons below the age of 45 with a disability of not less than 40% due to employment injury. These programs involve training provided in government or government-accredited institutions, following the norms of the Vocational Rehabilitation center. The Insured Person is entitled to reimbursement of expenses at the rate of the center or Rs. 123 per day, whichever is higher. Additionally, conveyance charges at normal rates or second-class railway/bus fare, as applicable, are reimbursed to attend such training programs.
What benefits are provided to an employee after retirement?
An Insured Person who retires due to superannuation or opts for voluntary retirement or premature retirement, having been covered for a minimum of 5 years, is entitled to receive medical benefits for themselves and their spouse. To avail of this benefit, proof of retirement must be provided, and a nominal contribution of Rs. 120 for one year is required. In the unfortunate event of the insured person’s demise, their spouse continues to receive medical benefits under Rule 61 by paying the specified contribution mentioned above.
What is Medical Benefit?
Medical benefit refers to the provision of medical attendance and treatment to individuals covered under the Act, namely the insured persons and their families, whenever required. This benefit is provided in kind through the State Governments, including Model Hospitals operated by the ESI Corporation (excluding Delhi). It is uniformly extended to all, irrespective of their wages and contributions, based on their individual needs.
How long is medical benefit available?
The insured person and their family have access to Medical Benefits from the very first day of joining insurable employment. A person newly covered under the scheme is eligible for primary and secondary medical care for themselves and their family for an initial three-month period. If the individual remains in insurable employment for three months or more, the benefit continues until the start of the corresponding benefit period.
Additionally, if the insured person has been under ESI coverage for at least 2 years from the date of Online Registration, contributed for not less than 156 days, and is eligible for Sickness Benefit for any one contribution period while suffering from one of the 34 specified long-term diseases, medical benefits are provided until the incapacity lasts or up to 730 days within a 3-year period for self and family.
Furthermore, if the insured person has been in ESI coverage for at least 2 years from the date of Online Registration, contributed for not less than 156 days before the date of diagnosis, and is eligible for Sickness Benefit in at least two contribution periods, they, along with their family members, are eligible for super specialty treatment. This contributory condition does not apply in case of an accident involving the insured person or their family member for SST treatment.
What’s gratuity?
Gratuity is a form of gratitude supplied in monetary phrases by means of the employer to the worker for the services rendered by the worker for a duration of 5 or more years.
What are the organizations for which payment of gratuity act is applicable?
Payment of gratuity act, 1972 applies to all stores or institutions having 10 or greater employees on any day during the previous one year.
Who can obtain gratuity?
Someone working as a worker in any business enterprise, keep, production unit, agricultural enterprise or service industry is eligible to get hold of gratuity as in keeping with the situations of gratuity. An apprentice isn’t always eligible for gratuity.
Whilst are the employees eligible for gratuity?
Employees who have rendered at least five years of non-stop carrier in an business enterprise are eligible to get hold of gratuity from the employer.
When is gratuity payable?
A company is vulnerable to pay gratuity to an employee
On the termination of his employment after he has rendered continuous service for not less than 5 years or
On his superannuation, or
On his retirement or resignation, or
On his demise or disablement due to accident or disorder (the completion of non-stop carrier of five years shall not be considered for the case of death or disablement).
How is gratuity calculated?
Gratuity payable = last drawn profits *15/26 *No of finished years of provider.
Earnings for the purpose of the above computation = fundamental income + Dearness allowance
What’s the most quantity of gratuity that can be paid to a worker?
The amount of gratuity payable to an employee shall no longer exceed Rs. 20 lakhs.
Is the gratuity received taxable inside the fingers of the employee?
In appreciate of gratuity acquired with the aid of authorities’ employees: whole quantity of gratuity is exempt from profits Tax.
In respect of gratuity acquired via personnel other than authorities’ personnel
Amount exempted from tax is
20 lakhs (or)
Actual gratuity acquired (or)
Closing drawn revenue *15/26 *No of finished years of provider (or) (Whichever is less).
What’s the due date for price of gratuity?
Gratuity has to be paid within 30 days from the date it turns into payable.
What’s the penalty for default below the fee of Gratuity Act, 1972?
Any man or woman, for the cause of avoiding payment of gratuity by using making any fake declaration or false illustration:
Imprisonment for 6 months or nice as much as Rs.10,000 or with each.
An enterprise, who contravenes or makes default in complying with the provisions of the act:
Imprisonment for not much less than 3 months and up to 1 year or excellent now not less than Rs.10,000 but up to Rs.20,000 or with each.
Is there any interest for behind schedule price of gratuity?
In case of enterprise default:
Corporation shall pay interest on the simple interest rate (charge notified by using the central government), from the date on which the gratuity turns into payable to the date until it is paid.
In case of employee default:
No interest will be payable if the put off in the charge is due to the fault of the employee and the agency has obtained permission in writing from the Controlling Authority for the delayed charge in this floor.
Whether Gratuity can be allowed as a deduction at the same time as calculating taxable earnings of the agency?
Deduction is allowed most effective if gratuity is clearly paid.
No deduction will be allowed in admire of any provision made through the assesses for the price of as in step with segment 40A (7) of the earnings tax act, 1961.
Ought to the personnel beneath training or apprenticeship be covered for the reason of gratuity?
Sure, regardless of whether the man or woman is in schooling or apprenticeship, he is eligible for gratuity, supplied he completes a non-stop period of 5 years of carrier
Is it possible for me to avail of the nomination facility provided by the Gratuity Act?
Upon new employee onboarding, individuals are mandated to complete Form “F” as part of the initiation process. This form necessitates each employee to designate one or more family members, as defined in the Act, who would be entitled to receive the gratuity in the unfortunate event of the employee’s demise.
The Ministry of Women & Child Development issued a notification dated February 23, 2024 specifying the minimum standards to be followed for setting up of creche facilities.
It applies to every individual/ service agencies/ corporations/ companies/universities/ hospitals/ care service providers/ government organisations/ non-governmental organisations etc, having 50 or more employees to have a creche, extending to both males and females. Additionally, Section 48 of the Factories Act, 1948, mandates creche facilities for factories with over 30 female workers.
Date of enforcement: February 23, 2024.
Key Highlights:
1. The creche is defined as a creche provides a safe and nurturing environment for youngsters while their parents or guardians work. These facilities prioritize children’s health, provide nutritional meals, and ensure a safe environment. It offers age-appropriate instructional activities.
2. Key considerations to consider when opening a créche:
a. Facility of creche may be provided from the age group of 6 months onwards.
b. The creche may also be set up in any office space, in a residential apartment/society, school, hospitals, cooperative office or any other place as per requirements.
c. It is mandatory that CCTV cameras are installed for ensuring security and supervision at the creche. Parents/ Guardians may preferably be provided with access to CCTV cameras, wherever possible, enabling them to monitor the creche remotely from their workplace.
d. The local police stations, the Women and Child Development/Social Welfare Department, and the Labour Department should invariably have the information about the location and details of the créche for safety purposes and information to be maintained by these offices.
e. Play materials and toys (essential ECCE Study material and play materials, sports materials, blocks etc.) should be provided to the children. Audio-visual equipment may be provided where appropriate and feasible to stimulate age-appropriate learning and cognitive development.
3. The Indicative composition of Creche Administrative Committee is as follows – i) Créche Administrator – To be nominated by institution/organisation operating the créche ii) Créche supervisor iii) Parents/ Guardians (preferably 3) of beneficiary children
4. Duties of creche supervisor:
a. The creche Supervisor will be overall in charge of the créche.
b. Planning and implementing age-appropriate educational activities to foster holistic development of the children.
c. To maintain/monitor records of children’s attendance and other statutory records.
5. Services available at the creche facilities are as followed:
a. Parent/Guardian and Administration meeting
b. Engagement and training of creche workers
c. Health, Medicine and First Aid Kits
d. Record maintenance
5. An administrative committee should regulate safety standards at the creche
a. Verifying and controlling access to CCTV surveillance, as well as processes for dealing with visits and pickups.
b. Conduct community-based inspections at least once a quarter to verify the creche is child-friendly and meets basic requirements for facilities and systems.
Enclosed is the Notification copy for your reference to implement this in your organisation.
What is UAN?
Why UAN?
EPF MEMBERS’ SERVICES.
UAN ALLOTMENT & ACTIVATION
CORRECT UPDATED INFORMATION ABOUT MEMBERS’ EPF ACCOUNT.
UAN ENABLED MEMBER SERVICES.
EPFO REQUESTS MEMBERS TO
MEMBERS ALREADY HAVING A UAN
Advantages of EPF
Provident Fund for Employees:
Pension Scheme for Employees:
Deposit Linked Insurance Scheme for Employees:
As India’s entrepreneurial culture flourishes, regulatory compliance becomes pivotal for business success. The government’s emphasis on startup growth and support for MSMEs underscores the importance of adherence to regulations, contributing to the diverse and expanding nature of Indian businesses. A harmonized approach across ministries fosters cooperation, ultimately boosting the nation’s economy. In this evolving landscape, maintaining successful businesses necessitates a keen focus on regulatory compliance.
Over time, the growing significance and necessity of regulatory compliance have continued to expand. As organizations evolve structurally and operationally into more intricate entities, the focus on regulatory compliance becomes increasingly imperative for seamless functioning. Businesses now acknowledge transparency as a fundamental asset, and a systematic approach to regulatory compliance plays a pivotal role in achieving this goal. Stakeholders, including shareholders, customers, and the general public, actively endorse and support businesses that adhere to ethical practices.
A rising trend in public and stakeholder engagement is evident in overseeing corporate compliance with internal policies and regulatory frameworks, aligning with legal standards. Regulatory compliance ensures that businesses adhere to financial terms, mitigating the potential for mismanagement. The importance of regulatory compliance has gained widespread recognition from the Indian Government, collaborating with industry leaders and other stakeholders to establish a more robust system. This collaborative effort aims to enhance regulatory compliance, ensuring smoother operations for businesses in India.
Delving into the realm of compliance, let’s closely examine its tangible impact on Indian businesses. To unveil its effects, it’s essential to grasp the concept of regulatory compliance first. Subsequently, this article will explore the key advantages that Indian businesses have gained through their dedicated commitment to regulatory compliance.
What is Regulatory Compliance?
Government Emphasis on Startup Growth and MSME Support.
Regulatory Compliance, to put it simply, requires the adoption and enforcement of a set regulatory framework by Indian legislation and relevant authorities. Corporations within its purview must adhere to these regulations, specifically designed for the industry or sector in which the organization operates. Complying with these regulations not only encourages transparency but also guarantees ethical operation for businesses.
What is the Need for Regulatory Compliance in Indian Business?
Challenges Faced by Startups and the Importance of Awareness.
India has experienced a notable surge in startup establishment, where entrepreneurs register ventures almost daily, contributing to the nation’s rapid economic growth. However, amidst this growth, a noteworthy trend emerges — startups cease operations at a relatively higher rate.
Upon closer examination of these startups’ trajectories, a significant factor contributing to their struggles becomes apparent: a lack of awareness regarding regulatory frameworks and compliance. Whether in personal life or the business realm, compliance plays a crucial role in determining success by ensuring a disciplined approach to internal operations. The absence of such adherence inevitably leads to long-term failure. The sustained success of an organization is intricately tied to its commitment to compliance practices.
Enhancing Credibility and Trust through Regulatory Compliance.
Building Trust through Regulatory Compliance.
Indian enterprises adhering to regulatory compliance gain a distinct edge, acquiring credibility and trust. Moreover, this commitment cultivates dependable and trustworthy partnerships while nurturing robust connections with customers and investors. Undoubtedly, the heightened trust factor can seamlessly translate into a competitive advantage within the business market.
Regulatory Compliance Serves as a Driver for Internal Optimization.
Meticulous Examination for Enhanced Risk Management.
As Indian businesses embrace regulatory compliance, they undergo a meticulous examination, entailing a comprehensive review of their internal processes. This practice contributes to enhanced risk management and streamlined business operations, thereby elevating the overall efficiency of the organization.
Ensuring Regulatory Compliance Contributes to Establishing a Sustainable Business Model.
Alignment with Global CSR Trends.
Generally, companies prioritizing corporate social responsibility (CSR) receive more favorable recognition on the global stage. The regulatory compliance framework in India is progressively aligning with these global trends. This alignment offers an open gateway for Indian organizations to actively participate in global socially responsible practices. Consequently, Indian companies prioritizing ESG (environmental, social, and governance) considerations not only achieve sustainability but also construct a robust business model.
Embracing Regulatory Compliance Drives Toward Digitalization.
Leveraging Technology for Compliance and Innovation.
In this era dominated by technology, it is prudent for organizations to embrace digitalization for innovation. Indian companies can leverage digitalization to gain a competitive edge by implementing data security measures to adhere to data protection compliance, employing advanced software for seamless GST compliance, and adopting various other technological advancements.
Government Initiatives and Support
Initiatives under ‘Ease of Doing Business’ Model.
Undoubtedly, any initiative inherently comes with its set of challenges. While regulatory compliance is pivotal for business improvement, the journey towards it is not devoid of its difficulties. Challenges encompass the cost implications of compliance, the need to modify established operational mechanisms within companies, and, significantly, a lack of awareness regarding the associated benefits. However, the Government of India has introduced and is in the process of introducing several schemes and benefits that companies can leverage in the future.
To address these challenges, the government has implemented various measures. For instance, it has introduced online portals for various departments, thereby eliminating the reliance on specific offices and providing businesses with readily available information. Other initiatives include the introduction of the Goods and Service Tax (GST) in 2017, aimed at simplifying the indirect taxation process. The implementation of the Companies Act, 2013, by the government promotes responsible business practices within Indian companies, benefiting both the public and the economy.
Furthermore, under the “Ease of Doing Business” model, the Government of India has introduced multiple initiatives to create a more business-friendly environment. These initiatives serve to simplify the regulatory process and reduce bureaucratic hurdles faced by Indian businesses in complying with regulations, ultimately contributing to the growth of the Indian economy.
The Influence of Regulatory Compliance on Indian Business is Diverse.
Positive Impact on Operations and Corporate Practices.
In summary, regulatory compliance exerts a profound influence on businesses, both domestically and globally. Adhering to regulatory compliance not only ensures clear and structured operations but also fosters trust within society and among the customer base, resulting in a positive impact on a company’s operations. In conclusion, Indian businesses stand to gain significant benefits and achieve a high return on investment by choosing to comply with applicable regulations and legislations. This commitment allows them to stand out and flourish in the business world, contributing not only financially but also in terms of corporate practices.
Moreover, leveraging the authority granted by Section 4A (4) of the Payment of Gratuity Act, 1972, the Karnataka government has issued a crucial notification, unveiling the ‘Karnataka Compulsory Insurance Rules, 2024.’ This strategic move not only showcases the government’s dedication to structured regulations but also emphasizes the paramount importance of legal adherence and the reinforcement of financial security for both employers and employees. Additionally, these rules mark a pivotal shift in the landscape of gratuity management, reflecting the state’s unwavering commitment to employment welfare and a well-defined compliance framework.
Karnataka Government’s Authority Action:
The Karnataka government, under Section 4A (4) of the Gratuity Act, has proactively issued the ‘Compulsory Insurance Rules, 2024,’ regulating gratuity-related matters.
Wide Applicability:
These rules, inclusive for all employers governed by the Payment of Gratuity Act in Karnataka, ensure comprehensive coverage of entities operating within the state.
Jurisdiction Clarity:
This provision specifies that the rules pertain to employers under the purview of the Karnataka Government, providing clarity on the jurisdiction where these regulations apply.
Insurance Deadline:
To comply with the rules before the March 10, 2024 deadline, existing establishments must secure a Life Insurance Corporation (LIC) policy within 60 days.
Registration Mandate:
Facilitating efficient compliance, employers must promptly register using Form-I within thirty days of obtaining insurance.
Quick Reporting:
To ensure transparency and adherence to regulatory requirements, employers must promptly report any changes in insured employees or policies to the Controlling Authority.
Premium Management:
Promoting financial integrity and consistency, employers are strongly advised to manage premium payments and policy renewals in a timely manner.
Gratuity Fund Compliance:
Emphasizing transparency in fund management, large employers with existing or new gratuity funds must submit Form II to ensure compliance with the rules.
Trust Requirements:
To promote fairness and accountability, employers opting for gratuity funds must undergo mandatory registration, ensuring equal representation from both employers and employees.
Flexible Trust Management:
Allowing for private, insurance, or joint management options based on the preferences and needs of employers, the rules offer flexibility in the management of gratuity trusts.
Contributions and Withdrawals:
Ensuring the fund’s dedicated use, contributions to the gratuity fund are exclusively made by the employer, and withdrawals are strictly reserved for gratuity payments to eligible employees.
Adherence to Standards:
Ensuring a standardized and compliant approach to financial management, the gratuity trust must adhere to Indian Accounting Standards 15 and other relevant laws.
Non-Payment Consequences:
To avoid consequences and ensure the financial well-being of employees, employers failing to make payments are obligated to settle the gratuity amount, including interest, immediately.
Penalties Alert:
Acting as a deterrent to non-compliance and reinforcing the seriousness of adhering to the regulations, violations of the rules may result in fines up to ten thousand rupees, with additional daily charges for continuing offenses.
Introduction:-
In a noteworthy development for EPFO members, the Central Board of Trustees has proposed an annual interest rate of 8.25% for EPF accumulations in the fiscal year 2023-24. This pivotal decision was reached during the 235th CBT meeting on February 10, 2024, representing a commendable step towards improving the financial well-being of EPF contributors. This recent development underscores the dedication to delivering substantial returns to EPFO subscribers, thereby reinforcing their economic stability.
1. Unprecedented Dividend Allocation:
The proposal involves a groundbreaking income distribution of Rs. 1,07,000 crores directly credited to the accounts of EPF members. This not only underscores the organization’s commitment to maximizing returns but also demonstrates its dedication to enhancing financial benefits for EPF contributors. This distribution, calculated based on a total principal amount of approximately 13 lakh crores, signifies the highest-ever total income distribution on record, further solidifying the organization’s reputation for providing substantial returns to its members.
2. Solid Financial Achievement:
This resolution follows a period marked by robust financial performance, showcasing an impressive income surge of 17.39% and a simultaneous 17.97% increase in the principal amount compared to the previous fiscal year. Such remarkable growth underscores the EPFO’s adept investment strategies and its expertise in delivering compelling returns for its members. The noteworthy financial results further emphasize the organization’s commitment to ensuring substantial financial gains for EPF contributors.
3. Trust in EPFO:
The interest rate presented by EPFO surpasses those offered by comparable investment avenues, indicating robust confidence in the organization’s creditworthiness and its ability to provide competitive returns to its members. This demonstration of trust is vital for subscribers aiming to instill stability and growth in their long-term financial strategies. The EPFO’s dedication to offering attractive interest rates further solidifies its position as a reliable and beneficial investment option for individuals seeking to secure their financial future.
4. Government Backing:
The suggested interest rate is contingent upon approval from the Ministry of Finance, underscoring the government’s commitment to safeguarding the interests of EPF subscribers. Upon approval, EPFO will expeditiously credit the sanctioned interest rate to its members’ accounts, ensuring timely and efficient benefits. This streamlined process reflects the government’s dedication to facilitating and prioritizing the financial well-being of EPF contributors through the swift implementation of beneficial measures.
5. Promoting Financial Inclusion:
EPFO’s endorsement of a substantial interest rate not only prioritizes the interests of existing subscribers but also fosters financial inclusion by encouraging greater participation in the EPF scheme. Through the provision of attractive returns, EPFO actively assumes a role in establishing a secure financial future for millions of workers across diverse sectors. This commitment to favorable returns acts as a catalyst for broader participation, thereby contributing to the organization’s mission of promoting financial security and inclusivity for a wide range of individuals.
Conclusion: –
The Central Board of Trustees’ proposal of an 8.25% interest rate for the fiscal year 2023-24 stands as a testament to the organization’s commitment to maximizing returns and enhancing the financial well-being of its subscribers. Bolstered by robust financial performance, prudent investment strategies, and government support, EPFO remains a steadfast cornerstone in securing the financial futures of millions of workers in India. This dedication to providing competitive returns firmly solidifies EPFO’s position as a reliable and influential entity in the realm of financial security for its members.
Minimum Wages for Maharashtra has been revised for the period of
1st January 2024 to 3oth June 2024.
Dear All,
The Government of Karnataka on January 10, 2024 released the Karnataka Compulsory Gratuity Insurance Rules, 2024.
Impacted Party(ies): It applies to every employer in Karnataka
Key Highlights:
(1) As per rule 3(1), every new employer shall subject to fulfillment of sub-section (2) of Section 4A of the Act, within a period of thirty days from the date on which these rules becomes applicable to such establishment shall obtain valid insurance policy in the manner as prescribed under sub-section (4) of Section 4A of the Act.
(2) As per rule 3(2), 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.
(3) As per rule 3 (3) , the employer of the establishment who has obtained a valid insurance policy shall make all payments by way of premium to the insurance company and renew the same periodically and intimate the same to the Controlling Authority within fifteen days from the date of renewal of the policy. The employer shall initiate the process of payment of premium and renewal of policy before the lapse of the policy.
(4) As per rule 5, Every employer shall submit an application in Form-I to get his establishment registered with the Controlling Authority of the area or any other officer notified for this purpose by the State Government within thirty days from the date of obtaining insurance along with the list of its employees insured.
(5) As per rule 6, Every employer of an establishment who had already established an approved gratuity fund in respect of his employees and who desires to continue such arrangement and every employer employing five hundred or more persons who establishes an approved gratuity fund may opt to continue or adopt such arrangement by submitting an application in Form II, provided such existing approved gratuity fund covers the entire liability of all the employees of the establishment under the provisions of the Act.
(6) As per rule 8, Every employer of the establishment to whom these rules apply shall take all measures to fulfill his obligations under the provisions of the Act.
For further details, request you to find the attached PDF for your reference.
