Dear Employer,
In exercise of the powers conferred by sub-section (4) of Section 4A of the Payment of Gratuity Act, 1972 Central Act No. 39 of 1972), the Government of Karnataka has notified- Karnataka Compulsory Gratuity Insurance Rules, 2024 on 10th January 2024.
With the notification of Karnataka Compulsory Gratuity Insurance Rules, 2024 on 10th January 2024, every employer shall obtain a valid insurance policy BY 10/03/2024 ( 60 days from the date of notification) for his liability for payment towards the gratuity to all eligible employees under the Act from the Life Insurance Corporation of India or any other approved insurance company for the employees working in the State of Karnataka EXCEPT for the employer who had duly established an Approved Gratuity Fund in respect of his employees.
Further, the notification mandates the establishment’s registration by applying Form -I with the controlling authority BY 08/02/2024 (within 30 days of the notification). Along with Form I, the details of the employees insured need to be submitted in Form III.
I am attaching a copy of the notification for ready reference.
There seems to be a disconnect concerning dates. The notification mandates that the establishment register within 30 days of registration by submitting FORM I. Form I contains the insurance policy information; however, the employer can purchase an insurance policy within 60 days of notification. We hope to get a clarification in this regard.
We believe we must comply with the filing of FORM I within 30 days of notification. In FORM I, we can mention that the Purchase of Policy is still under process. Later, when purchased, it can be notified to the controlling authority.
Thanks.
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