Rule 60. Time within which and the Form in which a written application shall be made under sub-section (1) and the Form of application to the Competent Authority under clause (b) of sub-section (5) of Section 56

(1) Application for Gratuity :

(a) An employee who is eligible for payment of gratuity under the Code, or any person authorized, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date on which the gratuity became payable, in Form – XV to the employer :

Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement:

Provided further that an employee on fixed term employment shall be eligible for gratuity, if he renders service under the contract for a period of one year and he shall be paid gratuity at the rate of fifteen days’ wages, based on the rate of wages last drawn by him, for every completed year of service or part thereof in excess of six months.

(b) A nominee of an employee who is eligible for payment of gratuity under the second proviso to sub-section (1) of Section 53 shall apply, ordinarily within thirty days from the date on which gratuity became payable to him, in Form – XV to the employer :

Provided that an application in plain paper with relevant particulars shall also be accepted and the employer may obtain such other particulars as may be deemed necessary by him.

(c) A legal heir of an employee who is eligible for payment of gratuity under the second proviso to sub-section (1) of Section 53 shall apply, ordinarily within one year from the date on which gratuity became payable to him, in Form – XV to the employer.

(d) Where gratuity becomes payable under the Code before the commencement of these rules, the periods of limitation specified in clauses (a), (b) and (c) of sub-rule (1) shall be deemed to be operative from the date of such commencement.

(e) An application for payment of gratuity filed after the expiry of the periods specified in this rule shall also be entertained by the employer, if the applicant adduces sufficient cause for the delay in preferring his claim, and no claim for gratuity under the Code shall be invalid merely because the claimant failed to present his application within the specified period. Any dispute in this regard shall be referred to the competent authority for his decision.

(f) An application under this rule shall be presented to the employer either electronically or by personal service or by registered post acknowledgement due.

(2) Notice for Payment of Gratuity :

(a) Within fifteen days of the receipt of an application under sub-rule (1) for payment of gratuity, the employer shall-(i) if the claim is found admissible on verification, issue a notice in Form – XVI to the applicant employee, nominee or legal heir, as the case may be, specifying the amount of gratuity payable and fixing a date, not being later than the thirtieth day after the date of receipt of the application, for payment thereof, or

(ii) if the claim for gratuity is not found admissible, issue a notice in Form – XVI to the applicant employee, nominee or legal heir, as the case may be, specifying the reasons as to why the claim for gratuity is not considered admissible. In the case of denial of gratuity a copy of the notice shall be endorsed to the competent authority.

(b) In case payment of gratuity is due to be made in the employer's office, the date fixed for the purpose in the notice in Form – XVI under sub-clause (i) of clause (a) of sub-rule (2) shall be re-fixed by the employer, if a written application in this behalf is made by the payee explaining as to why it is not possible for him to be present in person on the date so specified.

(c) If the claimant for gratuity is a nominee or a legal heir, the employer may ask for such witness or evidence as may be deemed relevant for establishing his identity or maintainability of his claim, as the case may be. In that case, the time limit specified for issuance of notices under clause (a) of sub-rule (2) shall be operative with effect from the date such witness or evidence, as the case may be, called for by the employer is furnished to the employer.

(d) A notice in Form – XVI shall be served on the applicant either electronically or by personal service after taking receipt or by registered post with acknowledgement due.

(e) A notice under sub-section (2) of Section 56 shall be in Form – XVI

(3) Mode of Payment of Gratuity : The gratuity payable under the Code shall be paid through Demand Draft or by crediting in the bank account of the eligible employee, nominee or legal heir, as the case may be:

Provided that intimation about the details of payment shall also be given by the employer to the competent authority of the area.

(4) Application to Competent Authority for Direction under clause (b) of sub-section (5) of Section 56:

(a) If an employer :-(i) refuses to accept a nomination under Rule 59 or to entertain an application sought to be filed under sub-rule (1), or

(ii) issues a notice under clause (a) of sub-rule (2) either specifying an amount of gratuity which is considered by the applicant less than what is payable or rejecting eligibility to payment of gratuity, or

(iii) having received an application under sub-rule (1) fails to issue notice as required under sub-rule (2) within the time specified therein, the claimant employee, nominee or legal heir, as the case may be, may, within one hundred eighty days of the occurrence of the cause for the application, apply in Form – XVII to the Competent Authority for issuing a direction under sub-section (5) of Section 56 with as many extra copies as are the opposite parties:

Provided that the competent authority may accept any application under this sub-rule, on sufficient cause being shown by the applicant, after the expiry of the specified period.

(b) Application under clause (a) sub-rule (4) and other documents relevant to such an application shall be presented electronically or in person to the competent authority or shall be sent by registered post acknowledgement due.

(5) Procedure for dealing with Application for Direction :

(a) On receipt of an application under sub-rule (4), the Competent Authority shall, by issuing a notice in Form – XVIII, electronically or by registered post acknowledgment due or in person call upon the applicant as well as the employer to appear before him on a specified date, time and place, either by himself or through his authorized representative together with all relevant documents and witnesses, if any.

(b) Any person desiring to act on behalf of an employer or employee, nominee or legal heir, as the case may be, shall present to the competent authority a letter of authority from the employer or the person concerned, as the case may be, on whose behalf he seeks to act together with a written statement explaining his interest in the matter and praying for permission so to act. The Competent Authority shall record thereon an order either according his approval or specifying, in the case of refusal to grant the permission prayed for, the reasons for the refusal.

(c) A party appearing by an authorized representative shall be bound by the acts of the representative.

(d) After completion of hearing on the date fixed under clause (a), or after such further evidence, examination of documents, witnesses, hearing and inquiry, as may be deemed necessary, the competent authority shall record his finding as to whether any amount is payable to the applicant under the Code. A copy of the finding shall be given to each of the parties.

(e) If the employer concerned fails to appear on the specified date of hearing after due service of notice without sufficient cause, the Competent Authority may proceed to hear and determine the application ex parte. If the applicant fails to appear on the specified date of hearing without sufficient cause, the competent authority may dismiss the application:

Provided that an order under clause (e ) of sub-rule (5) may, on sufficient cause being shown within thirty days of the said order, be reviewed and the application re-heard after giving not less than fourteen days' notice to the opposite party of the date fixed for rehearing of the application.

(6) Place and time of hearing : The sittings of the Competent Authority shall be held at such times and at such places as he may fix and he shall inform the parties of the same in such manner as he thinks fit.

(7) Administration of oath : The Competent Authority may authorise an Officer/Official subordinate to him of his office to administer oath for the purpose of making affidavits.

(8) Summoning and Attendance of Witnesses : The Competent Authority may, at any stage of the proceedings before him, either upon or without an application by any of the parties involved in the proceedings before him, and on such terms as may appear to the Competent Authority just, issue summons to any person in Form – XVIII either to give evidence or to produce documents or for both purposes on a specified date, time and place.

(9) Service of Summons or Notice :

(a) Subject to the provisions of clause (b), any notice, summons, process or order issued by the Competent Authority may be served either electronically or personally or by registered post acknowledgement due or in any other manner as prescribed under the Code of Civil Procedure, 1908 (5 of 1908).

(b) Where there are numerous persons as parties to any proceeding before the Competent Authority and such persons are members of any trade union or association or are represented by an authorized person, the service of notice on the Secretary, or where there is no Secretary, on the principal officer of the trade union or association, or on the authorized person shall be deemed to be service on such person.

(10) Maintenance of Records of Cases by the Competent Authority :

(a) The competent authority shall record the particulars of each case under Section 56 and at the time of passing orders shall sign and date the particulars so recorded.

(b) The competent authority shall, while passing orders in each case also record the findings on the merits of the case and file it together with the memoranda of evidence with the order sheet.

(c) Any record, other than a record of any order or direction, which is required by these rules to be signed by the Competent Authority, may be signed on behalf of and under the direction of the Competent Authority by any Subordinate Officer appointed in writing for this purpose by the Competent Authority.

(11) Direction for Payment of Gratuity : If a finding is recorded under clause (d) of sub-rule (5) that the applicant is entitled to payment of gratuity under the Code, the Competent Authority shall issue a notice to the employer concerned in Form – XIX electronically or registered post acknowledgment due or in person specifying the amount payable and directing payment thereof to the applicant under intimation to the Competent Authority within thirty days from the date of the receipt of the notice by the employer. A copy of the notice shall be endorsed to the applicant employee, nominee or legal heir, as the case may be.

(12) Appeal :

(a) The Memorandum of appeal under sub-section (8) of Section 56 of the Code shall be submitted to the Appellate Authority with a copy thereof to the opposite party and the Competent Authority either electronically or through delivery in person or under registered post acknowledgement due.

(b) The Memorandum of appeal shall contain the facts of the case, the decision of the Competent Authority, the grounds of appeal and the relief sought.

(c) There shall be appended to the Memorandum of appeal, a certified copy of the finding of the Competent Authority and direction for payment of gratuity.

(d) On receipt of the copy of Memorandum of appeal, the Competent Authority shall forward records of the case to the Appellate Authority.

(e) Within fourteen days of the receipt of the copy of the Memorandum of appeal, the opposite party shall submit his comments of each paragraph of the memorandum with additional pleas, if any, to the Appellate Authority with a copy to the appellant.

(f) The Appellate Authority shall record its decision after giving the parties to the appeal, a reasonable opportunity of being heard. A copy of the decision shall be given to the parties to the appeal, electronically or by registered post or in person and a copy thereof shall be sent to the Competent Authority returning his records of the case.

(g) The Competent Authority shall, on receipt of the decision of the Appellate Authority, make necessary entry in the records of the case maintained by him.

(h) On receipt of the decision of the Appellate Authority, the Competent Authority shall, if required under that decision, modify his direction for payment of gratuity and issue a notice to the employer concerned in Form – XIX specifying the modified amount payable and directing payment thereof to the applicant, under intimation to the Competent Authority within fifteen days of the receipt of the notice by the employer. A copy of the notice is to be endorsed to the appellant employee, nominee or legal heir, as the case may be, and to the Appellate Authority.

(13) Application for Recovery of Gratuity : Where an employer fails to pay the gratuity due under the Code in accordance with the notice by the Competent Authority under sub-rule (11) or sub-rule (12), as the case may be, the employee concerned, his nominee or legal heir, as the case may be, to whom the gratuity is payable may apply to the Competent Authority in duplicate in Form – XX for recovery thereof under Section 129 of the Code.