The Notice of Opening (Form A) under the Payment of Gratuity Act, 1972 is a mandatory form that employers must submit to notify the controlling authority about the opening of their establishment. The form is a declaration made by the employer when a new establishment is set up or when an establishment comes under the purview of the Payment of Gratuity Act due to an increase in the number of employees (i.e., 10 or more employees).
Is it Mandatory?
Yes, Form A is mandatory. According to Section 3 (1) of the Payment of Gratuity (Central) Rules, 1972, the employer of an establishment covered by this Act is required to submit a notice of opening (Form A) to the controlling authority of the area within 30 days of the date on which the establishment becomes eligible under the Act.
Why Is It Mandatory?
- Compliance with the law: This ensures that the employer is complying with the provisions of the Payment of Gratuity Act. Failing to submit the form can result in penalties and may be considered a violation of the Act.
- Registration and tracking: It helps authorities keep track of establishments covered under the Act to ensure gratuity payments are made to eligible employees.
- Transparency: It promotes transparency in employee benefits, ensuring workers receive gratuity upon retirement, resignation, or termination after meeting the eligibility criteria (continuous service of five years or more).
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How to Submit Form A
- Obtain Form A: The form is available on the websites of state labour departments or can be obtained from the local labour office.
- Fill in the Details: The form requires the following information:
- Name and address of the establishment
- Name and designation of the employer
- Number of persons employed
- Maximum number of persons employed on any day during the preceding 12 months with date
- Number of employees covered by the Act
- Nature of Industry
- Whether seasonal
- Date of opening
- Details of head of office/branches
- Other relevant details.
- Submit to Controlling Authority: The completed form should be submitted to the appropriate controlling authority (the regional or state labour commissioner’s office) either physically or online, depending on the state’s regulations.
- Keep Acknowledgment: After submitting the form, ensure you receive an acknowledgement as proof of submission.
Download Notice of Opening (Form A)
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