Rule 33: Application for gratuity and appeal, etc.

Finin2min analysis — operative rule mechanics

Full notified text — Rule 33

33. Application for gratuity and appeal etc.,– (1) (a) An employee who is eligible for payment of
gratuity under the Code, or any person authorised, in writing, to act on his behalf, shall apply,
ordinarily within a period of thirty days from the date the gratuity became payable, in Form-IV to the
employer:

      Provided that where the date of superannuation or retirement of an employee is known, the
employee may apply to the employer before thirty days of the date of superannuation or retirement:

       Provided further that an employee on fixed term employment shall be eligible for gratuity, if
he renders service under the contract for a period of at least one year and for subsequent period in
excess of six months and more, but less than one year, shall be rounded off to one additional year.

(b) A nominee of an employee who is eligible for payment of gratuity under the third proviso to sub-
section (1) of section 53 shall apply, ordinarily within thirty days from the date gratuity became
payable to him, in Form-IV to the employer:

       Provided that an application in plain paper with relevant particulars shall also be accepted and
the employer may obtain such other particulars as may be deemed necessary by him.

(c) A legal heir of an employee, who is eligible for payment of gratuity under the third proviso to sub-
section (1) of section 53, shall apply, ordinarily within one year from the date gratuity became payable
to him, in Form-IV to the employer;

(d) Where gratuity becomes payable under the Code before the commencement of these rules, the
periods of limitation specified in clauses (a), (b) and (c) shall be deemed to be operative from the date
of such commencement;

(e) An application for payment of gratuity filed after the expiry of the periods specified in this rule
shall also be entertained by the employer, if the applicant adduces sufficient cause for the delay in
preferring his claim, and no claim for gratuity under the Code shall be invalid merely because the
claimant failed to present his application within the specified period and any dispute in this regard
shall be referred to the competent authority for his decision.

(f) An application under this rule shall be presented to the employer either electronically or by
personal service or by speed post (with registration).

(2) (a) within fifteen days of the receipt of an application under sub-rule (1) for payment of gratuity,
the employer shall–

   (i) if the claim is found admissible on verification, issue a notice in Form-V to the applicant
   employee, nominee or legal heir, as the case may be, specifying the amount of gratuity payable and
   fixing a date, not being later than the thirtieth day after the date of receipt of the application, for
   payment thereof; or

   (ii) if the claim for gratuity is not found admissible, issue a notice in Form-V to the applicant
   employee, nominee or legal heir, as the case may be, specifying the reasons why the claim for
   gratuity is not considered admissible and a copy of the notice shall be endorsed to the competent
   authority.

(b) In case payment of gratuity is due to be made in the employer's office, the date fixed for the
purpose in the notice in Form-V under sub-clause (i) of clause (a) sub-rule (2) shall be re-fixed by the

employer, if a written application in this behalf is made by the payee explaining why it is not possible
for him to be present in person on the date specified.

(c) If the claimant for gratuity is a nominee or a legal heir, the employer may ask for such witness(es)
or evidence(s) as may be deemed relevant for establishing his identity or maintainability of his claim,
as the case may be and in that case, the time limit specified for issuance of notices under clause (a) of
sub-rule (2) shall be operative with effect from the date such witness(es) or evidence(s), as the case
may be, called for by the employer is furnished to the employer.

(d) A notice in Form-V shall be served on the applicant either by personal service after taking receipt
or by speed post (with registration) or electronically.

(e) A notice under sub-section (2) of section 56 shall be in Form-V.

(3) The gratuity payable under the Code shall be paid through Demand Draft or by crediting in the
bank account of the eligible employee, nominee or legal heir, as the case may be.

(4) (a) If an employer–

      (i) refuses to accept a nomination under rule 32 or to entertain an application sought to be filed
      under sub-rule (1); or

      (ii) issues a notice under clause (a) of sub-rule (2) either specifying an amount of gratuity which
      is considered by the applicant less than what is payable or rejecting eligibility to payment of
      gratuity; or

      (iii) having received an application under sub-rule (1) fails to issue notice as required under sub-
      rule (2) within the time specified therein,

the claimant employee, nominee or legal heir, as the case may be, may, within one hundred eighty
days of the occurrence of the cause for the application, apply in Form-VI to the competent authority
for issuing a direction under sub-section (5) of section 56 with copy to the opposite party:

         Provided that the competent authority may accept any application under this sub-rule, on
sufficient cause being shown by the applicant, after the expiry of the specified period.

(b) Application under clause (a) and other documents relevant to such an application shall be
presented in person to the competent authority or shall be sent by speed post (with registration) or
electronically.

(5) (a) On receipt of an application under sub-rule (4) the competent authority shall, by issuing a
notice in Form-VII, electronically or speed post (with registration) acknowledgment due or in person
call upon the applicant as well as the employer to appear before him on a specified date, time and
place, either by himself or through his authorised representative through virtual mode or otherwise
together with all relevant documents and witnesses, if any.

(b) Any person desiring to act on behalf of an employer or employee, nominee or legal heir, as the
case may be, shall present to the competent authority a letter of authority from the employer or the
person concerned, as the case may be, on whose behalf he seeks to act together with a written
statement explaining his interest in the matter and praying for permission so to act and the competent
authority shall record thereon an order either according his approval or specifying, in the case of
refusal to grant the permission prayed for, the reasons for the refusal.

(c) A party who is being represented by an authorised representative shall be bound by the acts of the
representative.

(d) After completion of hearing on the date(s) fixed under clause (a), or after taking such further
evidence(s), examination of documents or witnesses, hearing and inquiry, as may be deemed
necessary, the competent authority shall record his finding as to whether any amount is payable to the
applicant under the Code and a copy of the finding shall be given to each of the parties.

Provided that the Competent Authority shall dispose of the application for gratuity within six months
from the date of receipt of the application:

Provided further that the Competent Authority may, for reasons to be recorded in writing, extend the
said period for a further period not exceeding three months.

(e) If the employer concerned fails to appear on the specified date of hearing after due service of
notice without sufficient cause being shown, the competent authority may proceed to hear and
determine the application ex parte; and if the applicant fails to appear on the specified date of hearing
without sufficient cause, the competent authority may dismiss the application:

         Provided that an order under clause (e) may, on good cause being shown within a period of
thirty days of receipt of the said order, be reviewed and the application re-heard after giving not less
than fourteen days‘ notice to the opposite party of the date fixed for rehearing of the application.

(6) The sittings of the competent authority shall be held at such times and at such places as he may fix
and he shall inform the parties of the same electronically or otherwise.

(7) The competent authority may authorise a clerk of his office to administer oaths for the purpose of
giving evidence or producing documents.

(8) The competent authority may, at any stage of the proceedings before him, either upon or without
an application by any of the parties involved in the proceedings before him, and on such terms as may
appear to the competent authority just, issue summons to any person in Form-VII either to give
evidence or to produce documents or for both purposes on a specified date, time and place.

(9) (a) Subject to the provisions of clause (b), any notice, summons, process or order issued by the
competent authority may be served either personally or by speed post (with registration) or
electronically or in any other manner as provided under the Code of Civil Procedure, 1908 (5 of
1908).

(b) Where there are numerous persons as parties to any proceeding before the competent authority and
such persons are members of any trade union or association or are represented by an authorised
person, the service of notice on the secretary, or where there is no secretary, on the principal officer of
the trade union or association, or on the authorised person shall be deemed to be service on such
persons.

(10) (a) The competent authority shall record the particulars of each case under section 56 and at the
time of passing orders shall sign and date the particulars so recorded.

(b) The competent authority shall, while passing orders in each case, also record the findings on the
merits of the case and file it together with the memoranda of evidence with the order sheet.

(c) Any record, other than a record of any order or direction, which is required by these rules to be
signed by the competent authority, may be signed on behalf of and under the direction of the
competent authority by any subordinate officer appointed in writing for this purpose by the competent
authority.

(11) If a finding is recorded under clause (d) of sub-rule (5) that the applicant is entitled to payment of
gratuity under the Code, the competent authority shall issue a notice to the employer concerned in
Form-VIII electronically or by speed post (with registration) or in person specifying the amount
payable and directing payment thereof to the applicant under intimation to the competent authority
within a period of thirty days from the date of the receipt of the notice by the employer and a copy of
the notice shall be endorsed to the applicant employee, nominee or legal heir, as the case may be.

(12) (a) The memorandum of appeal under sub-section (8) of section 56 shall be submitted to the
appellate authority specified, by order, by the Central Government with a copy thereof to the opposite
party and the competent authority either through delivery in person or by speed post (with
registration) or electronically.

(b) The memorandum of appeal shall contain the facts of the case, the decision of the competent
authority, the grounds of appeal and the relief sought.

(c) There shall be appended to the memorandum of appeal a certified copy of the finding of the
competent authority and direction for payment of gratuity.

(d) On receipt of the copy of memorandum of appeal, the competent authority shall forward records of
the case to the appellate authority.

(e) Within fourteen days of the receipt of the copy of the memorandum of appeal from the appellate
authority, the opposite party shall submit his reply of each paragraph of the memorandum with
additional pleas, if any, to the appellate authority with a copy to the appellant.

(f) The appellate authority shall record its decision after giving the parties to the appeal a reasonable
opportunity of being heard and a copy of the decision made by the appellate authority shall be given
to the parties to the appeal electronically or byspeed post (with registration) or in person and a copy
thereof shall be sent to the competent authority returning records of the case sent by him:

Provided that the Appellate Authority shall dispose of the application for gratuity within six months
from the date of receipt of the application:

Provided further that the Appellate Authority may, for reasons to be recorded in writing, extend the
said period for a further period not exceeding three months.

(g) The competent authority shall, on receipt of the decision of the appellate authority, make
necessary entry in the records of the case maintained by him.

(h) On receipt of the decision of the appellate authority, the competent authority shall, if required
under that decision, modify his direction for payment of gratuity and issue a notice to the employer
concerned in Form-VIII specifying the modified amount payable and directing payment thereof to the
applicant, under intimation to the competent authority within a period of fifteen days of the receipt of
the notice by the employer and a copy of the notice be endorsed to the appellant employee, nominee
or legal heir, as the case may be, and to the appellate authority.

(13) Where an employer fails to pay the gratuity due under the Code in accordance with the notice by
the competent authority under sub-rule (11) or sub-rule (12), as the case may be, the employee
concerned, his nominee or legal heir, as the case may be, to whom the gratuity is payable may apply
to the competent authority in duplicate in Form IX for recovery thereof under section 129.

Application and evidence

1. Primary statutory test — ,– (1) (a) An employee who is eligible for payment of gratuity under the Code, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within a period of thirty days from the date the gratuity became payable, in Form-IV to the employer:
2. Additional operative limb — Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement:
3. Qualification / exception to test — Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement:
4. Numerical or timing control — Application for gratuity and appeal etc.,– (1) (a) An employee who is eligible for payment of gratuity under the Code, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within a period of thirty days from the date the gratuity became payable, in Form-IV to the employer:
5. Code Section mapping — 56, 58. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
6. Prescribed-form link recorded in the corpus — IV, V, VI, VII, VIII, IX. Confirm the current notified form/version before filing.

Cross-references & prescribed forms

Worked example

Q&A — Rule 33

Primary sources