Karnataka Makes Karnataka Compulsory Gratuity Insurance Rules, 2024

Posted On - 19 February, 2024 • By - King Stubb & Kasiva

The Karnataka Government by issue of notification dated January 10th, 2024 bearing No. LD 397 LET 2023, made the Karnataka Compulsory Gratuity Insurance Rules, 2024 (“Rules”). They shall come into force from the date of their publication in the official gazette. Some of the significant provisions of the Rules are as follows:

  1. Every new employer shall be required to obtain a valid insurance policy for his liability for payment towards gratuity to all eligible employees in accordance with the provisions of the Payment of Gratuity Act, 1972 (“Act”) within 30 days of applicability of the Rules and employer of an existing establishment shall obtain the insurance policy within 60 days from the date of commencement of the Rules;
  2. Every employer shall further register themselves with the concerned Controlling Authority by submitting an application under Form-I within 30 days from the date of obtaining insurance along with the list of employees insured;
  3. Every employer of an establishment who has 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 may opt to continue or adopt such arrangement by submitting an application in Form II, provided such existing approved gratuity fund covers the entire liability of all the employees of the establishment under the provisions of the Act. Further, such employers shall register the Gratuity Trust with five but not equal number of representatives of the employer and employees with the concerned registration authority.