The Government of Karnataka on 10th January, 2024 notified regarding the Karnataka Compulsory Gratuity Insurance Rules, 2024. The rules are made under the powers conferred by the Payment of Gratuity Act, 1972. The rules primarily focus on the compulsory insurance for the payment of gratuity to eligible employees.
New employers and existing establishments are required to obtain a valid insurance policy from a recognized insurance company within specific timeframes and renewed periodically, register their establishments with the Controlling Authority, and provide details of the employees insured, along with any changes in the future.
The Controlling Authority is authorized to recover the amount of gratuity payable to an employee from the insurance company in case of dispute or as determined by the employer.
Employers with existing approved gratuity funds may opt to continue or adopt such arrangements by following specified procedures, and are also required to register the Gratuity Trust with representatives of the employer and employees.
The notification includes various forms for application, option to continue existing insurance schemes, details of employees covered under compulsory insurance, and the register of establishments under compulsory insurance.
Employers are mandated to comply with the provisions of the Act, exercise due diligence for on-time payment of premiums, and ensure the fulfillment of their liabilities under the Act.
In summary, the Karnataka Compulsory Gratuity Insurance Rules, 2024, outline the mandatory requirements for employers to obtain insurance for the payment of gratuity to eligible employees and ensure compliance with the provisions of the Payment of Gratuity Act, 1972.
