Rule 7. Bank or other financial institution in which the gratuity shall be invested for the benefit of minor under the third proviso to sub-section (1) of section 53 of the Code

(1) In the case of nominee, or an heir, who is minor, the competent authority shall invest the gratuity amount deposited with him for the benefit of such minor in term deposit with the State Bank of India or any other Nationalised Bank.

Explanation.- “Nationalised Bank” means a corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or a corresponding new bank specified in the First Schedule of the Banking Companies(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).

(2) Time, form and manner of nomination by an employee under sub-section(1), the time to make fresh nomination under sub-section (4), the form and manner of modification of a nomination under sub-section (5)and the form for fresh nomination under sub-section (6) of section 55 of the Code .—

(a) a nomination shall be in Form-IV and submitted in duplicate by the employee either by personal service, after taking proper receipt or by registered post acknowledgement due or electronically to the employer;

(i) In the case of an employee who is already in employment for a year or more on the date of commencement of these rules but not submitted the nomination, ordinarily, within ninety days from such date; and

(ii) In the case of an employee who completes one year of service after the date of commencement of these rules, ordinarily within thirty days of the completion of one year of service:

Provided that nomination in Form-IV shall be accepted by the employer after the specified period, if filed and no nomination so accepted shall be invalid merely because it was filed after the specified period.

(b) within thirty days of the receipt of nomination in Form-IV under sub-rule (1), the employer shall get the service particulars of the employee, as mentioned in the form of nomination, verified with reference to the records of the establishment and return to the employee, after obtaining a receipt thereof, the duplicate copy of the nomination in Form-IV duly attested either by the employer or an officer authorised in this behalf by him, as a token of recording of the nomination by the employer and the other copy of the nomination shall be recorded;

(c) an employee who has no family at the time of making a nomination shall, within ninety days of acquiring a family submit in the manner specified in sub-rule (1), a fresh nomination, as required under sub-section (4) of section 55, duplicate in Form-V to the employer and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis as if it was made under sub-rule (1);

(d) a notice of modification of a nomination, including cases where a nominee predeceases an employee, shall be submitted in duplicate in Form-VI to the employer in the manner specified in sub-rule (1)and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis;

(e) a nomination or a fresh nomination or a notice of modification of nomination shall be signed by the employee or, if illiterate, shall bear his thumb impression in the presence of two witnesses, who shall also sign a declaration to that effect in the nomination, fresh nomination or a notice of modification of nomination, as the case may be, and shall be submitted by the employee electronically or by registered post acknowledgement due to the employer;

(f) a nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.