Rule 61. The manner of Registration of an Establishment by the employer under sub-section (3) and the manner of Composition of Board of Trustees of the Approved Gratuity Fund and the manner in which the Competent Authority may recover the amount of the gratuity payable to an employee from the insurer under sub-section (4) of Section 57

(1) Obtaining Insurance for payment of Gratuity : Every employer other than an employer of an establishment belonging to, or under the control of, the Central Government or a State Government, shall subject to provisions of clause (i) of sub-section (1) of Section 57, obtain an insurance in the manner prescribed for his liability for payment towards the gratuity under this Code, from any Insurance Company regulated by the authority as defined under clause (b) of sub-section (1) of Section 2 of the Insurance Regulatory and Development Authority Act, 1999.

(2) Recovery of the amount of Gratuity :

(a) The Competent Authority appointed under sub-section (4) of Section 57 is authorized to recover the amount of the Gratuity payable to an employee, from the insurer with whom an insurance has been taken under sub-section (1) or as the case may be, the Board of Trustees of the Approved Gratuity Fund as defined in sub-section (5) of Section 2 of the Income Tax Act, 1961 ;

(b) Such Board of Trustees should include equal number of representatives of the employer and the employees of the establishment.

(3) Registration of Establishment :

(a) Every employer of an establishment covered by the Code shall get his establishment registered electronically or otherwise with the Competent Authority of the area in Form – XXI within 30 days from the notification of the compulsory insurance provided under sub-section (1) of Section 57 of the Code, along with details of employees of the establishment, to be furnished in Form – XXII ;

(b) The Certificate of Registration shall be issued electronically or otherwise immediately if the application is complete in all respects but not later than seven days from the date of submission of complete application, failing which such establishment shall be deemed to have been registered and the Certificate of Registration shall be auto generated ;

(c) Every employer shall furnish the details of the employees insured, to the competent authority in Form – XXII at the time of registration of the establishment with the Competent Authority and thereafter whenever there is a change in the employees insured.

(4) Continuing the Approved Gratuity Fund : Every employer of an establishment covered under the Code, who had already established an Approved Gratuity Fund in respect of his employees and who desires to continue such arrangement, and every employer employing 500 or more persons who establishes an Approved Gratuity Fund in accordance with sub-section (5) of Section 2 of the Income Tax Act, 1961 may opt to continue or adopt such arrangement by submitting an option in the prescribed Form – XXIII provided such existing Approved Gratuity Fund covers the entire liability of all the employees of the establishment, under provisions of the Code.