Andhra Pradesh Payment of Gratuity Rules 1972
(1) These rules may be called the Andhra Pradesh Payment of Gratuity Rules, 1972.
(2) These rules shall be deemed to have come into force on the 16th September, 1972.
In these rules, unless there is anything repugnant in the subject or context--
(a) “Act” means the Payment of Gratuity Act, 1972 ;
(b) “Appellate authority” means the Government of Andhra Pradesh or the authority specified by the Government under sub_section (7) of Section 7 ;
(c) “Form” means a form appended to these rules;
(d) “Nomination” means nomination made under Section 6;
(e) “Section” means a section of the Act.
(1) [x x x ]
(2) [x x x]
(3) Where an employer intends to close down the business, he shall submit a notice in Form ‘C’ to the controlling authority of the area at least sixty days before the intended closure.
(1) The employer shall display conspicuously a notice at or near the main entrance of the establishment in bold letters in English and in language understood by the majority of the employees specifying the name of officer with designation authorised by the employer to receive on his behalf notice under the Act or the rules.
(2) A fresh notice shall be displayed immediately after the notice referred to in sub_rule (1) becomes illegal or requires a change.
Form of notice under proviso to Section 2(h)(ii):- [ x x x]
(1) A nomination shall be in Form ‘F’ and submitted in duplicate by personal service by the employee, after taking proper receipt in duplicate by personal service by the employee after taking proper receipt or by sending through registered post acknowledgment due 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, ordinarily, within ninety days from such date ;
(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 the nomination in Form ‘F’ shall be accepted by the employer after the specified period, if filed with reasonable grounds for delay, and no nomination so accepted shall be invalid merely because it was filed after the specified period.
(1) An employee who is eligible for payment of gratuity under the Act, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form ‘I’ 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.
(2) A nominee of an employee who is eligible for payment of gratuity under the second proviso to sub_section (1) of Section 4 shall apply, ordinarily within thirty days from the date of gratuity became payable to him, in Form ‘J’ to the employer :
Provided that an application on plain paper with relevant particulars shall also be accepted. The employer may obtain such other particulars as may be deemed necessary by him.
(3) A legal heir
(1) Within fifteen days of the receipt of an application under Rule 7 for payment of gratuity, the employer shall:--
(i) If the claim is found admissible on verification, issue a notice in Form ‘L’ 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 ‘M’ 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. [x x x]
(2) 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 ‘L’ under clause (i) of sub_rule (1) shall be refixed by the employer, if a written applicat
The Gratuity shall be paid by a crossed cheque or Demand Draft to the eligible employee or nominee or legal heir, as the case may be :
Provided that where the amount of gratuity is less than Rs.5,000/- (Rupees five thousand only) the employee’s nominee or legal heir, if so desires, the payment may be made in cash or through postal money order, after deducting the commission charged thereon from the amount of gratuity.
(1) If an employer--
(i) refuses to accept a nomination or to entertain an application sought to be filed under Rule 7, or
(ii) issues a notice under sub_rule (1) of Rule 8 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 Rule 7 fails to issue any notice as required under Rule 8 within the time specified therein, the claimant employee, nominee or legal heir, as the case may be, within ninety days of the occurrence of the cause for the application, apply in Form ‘N’ to the controlling authority for issuing a direction under sub_section (4) of Section 7 with as many extra copies as are the opposite parties :
Provided that the controlling authority may accept any application under this sub_rule, on sufficient cause being
(1) On receipt of an application under rule 10 the controlling authority shall, by issuing a notice of Form ‘O’, 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 together with all relevant documents and witnesses, if any.
(2) 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 controlling 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. The controlling 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.
(3) A party ap
The sittings of the controlling authority shall be held at such times and at such places as he may fix and he shall inform the parties of the same in such manner as he thinks fit.
The controlling authority may authorise a clerk of his office to administer oaths for the purpose of making affidavits.
The controlling 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 controlling authority just, issue summons to any person in Form ‘P’ either to give evidence or to produce documents or for both purposes on a specified date, time and place.
(1) Subject to the provisions of sub_rule (2) any notice, summons, process or order issued by the controlling authority may be served either personally or by registered post acknowledgment due or in any other manner as prescribed under the Code of Civil Procedure, 1908 (Act 5 of 1908).
(2) Where there are numerous persons as parties to any proceeding before the controlling 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 served on such persons.
Rule 15 of the Andhra Pradesh Payment of Gratuity Rules, 1972, is a procedural mechanism designed to notify employers and employees about the status of gratuity cases before they are heard by the Controlling Authority. It serves as a critical step in the quasi-judicial process of dispute resolution under the Payment of Gratuity Act, 1972. While the specific text of Rule 15 is procedural, its implications are deeply intertwined with substantive rights regarding entitlement, delay condonation, and the overriding nature of the Central Act over state or institutional rules. The jurisprudence surrounding this rule highlights the liberal construction approach adopted by courts to prevent the statutory right to gratuity from being extinguished by procedural technicalities.
Rule 15 governs the service of summons or notice regarding applications for the determination of gratuity. Although the exact wording is not fully detailed in the provided summary sources, the context of the rules and associated case law establishes that this rule mandates the formal communication of the application to the employer once it is accepted by the Controlling Authority. The process ensures that the employer is invited to appear before the authority to either admit or contest the claim. This procedural step precedes the actual hearing and determination of the amount (Rule 17) but follows the initial acceptance and filing of the application. It acts as the bridge between the submission of a claim and the adjudication of the dispute, ensuring due process and notice to the respective parties involved.
To effectively operate under the framework suggested by Rule 15 and the associated Act:- Proper Filing: There must be a valid application under Rule 7 (either by the employer refusing the claim or the employee seeking direction).- Acceptance by Authority: The Controlling Authority must have accepted the application, noting that delays are often condoned liberally under the proviso to Rule 7(1) and Rule 7(5), as the substantive right to gratuity cannot be barred solely by time limits unless sufficient cause is shown. [Source Vensa Biotech Limited VS Bodda Rambabu, Source V. Venkateswara Rao VS Chairman/governing Body, S. M. V. M. ]- Formal Notification: The employer must receive a summons or notice specifying the date, time, and venue of the hearing.- Opportunity of Hearing: The service of notice under Rule 15 is intended to provide the employer a reasonable opportunity to contest the claim or represent their side, as required under Section 7 of the Act.- Continuous Service Verification: The proceedings initiated via Rule 15 must verify that the employee has rendered continuous service of not less than five years, which is the primary condition for eligibility. [Source Mohanlal S/O. Nanno Mal VS Appellate Authority, Source Contentra Technologies (India) Pvt. Ltd. VS Nikhil Pal]
The scope of Rule 15 extends beyond mere formal notification; it safeguards the statutory nature of the claim:- Liberal Interpretation: The provisions governing the timeline and procedure for filing applications (leading up to Rule 15) are interpreted liberally. The Limitation Act, 1963, is generally not applicable, and delays in filing applications for the issuance of a direction under Rule 7 are routinely condoned if the applicant shows sufficient cause. [Source Vensa Biotech Limited VS Bodda Rambabu, Source V. Venkateswara Rao VS Chairman/governing Body, S. M. V. M. ]- Properties Right: The claim for gratuity is viewed as a property right under Article 300-A of the Constitution. Consequently, the procedural steps under Rule 15 cannot be used to deprive an employee of this accrued right without a specific legal authority or due process. [Source Sohagvati (Dead) Thr. Lrs Chandra Prakash, S/o. Late Shri Raj Mani Sharma VS Upkshetriya Prabandhak South Estern Kol Fields Limited. ]- Self-Contained Code: The Act is a complete code. All disputes arising under the Act, including those leading to notices under Rule 15, must be adjudicated by the designated authorities (Controlling/Appellate), not through separate civil suits or under general limitation laws. [Source V. Balakrishna VS General Manager, MTH Division, HMT Ltd. , Hyderabad, Source MANAGER, RAIBAG TALUK PRIMARY CO-OPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK LIMITED, RAIBAG, BELGAUM DISTRICT VS DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, BELGAUM 1]- Applicability to Local Bodies: The scope applies to local authorities and panchayats employing more than ten persons, as notified under the Central Government notification of 1982, ensuring they are no exceptions to the Act. [Source Municipal Council, Damoh VS Smt. sultana Tayar, Source Suryapet Co-operative Marketing Society Ltd. , Suryapet, by its Secretary VS Munsif Magistrate, Suryapet]- Daily Wage Employees: The scope covers daily wage workers who, after regularization or working a specific number of days (e.g., 240 days), qualify for gratuity, ensuring inclusive coverage. [Source Cawnpore Sugar Works Ltd. VS Appellate Authority, Source Mohanlal S/O. Nanno Mal VS Appellate Authority]
While Rule 15 itself is procedural, violations of the Payment of Gratuity Act during the process initiated under these rules can attract severe penalties:- Penalties for Employer Default: If an employer fails to pay gratuity within 30 days of the determination order (following the notice proceedings), they are liable for interest. [Source Sohagvati (Dead) Thr. Lrs Chandra Prakash, S/o. Late Shri Raj Mani Sharma VS Upkshetriya Prabandhak South Estern Kol Fields Limited. ]- Fine and Imprisonment: Under Section 22 of the Payment of Gratuity Act, 1972, employers who willfully contravene the Act's provisions are liable to prosecution, which may result in imprisonment for up to two years and/or a fine up to ₹20,000. [Source ]- Criminal Liability for Withholding: If the refusal to pay or the obstruction of the notice process is deemed willful, the Controlling Authority forwards a report to the Superintendent of Police for prosecution. [Source 00200038133 (implied by general provisions)]- Interest on Delay: While not a "punishment" in the criminal sense, the mandatory statutory interest (often 9% to 12% p.a.) awarded for delayed payment acts as a punitive financial deterrent against non-compliance. [Source Vensa Biotech Limited VS Bodda Rambabu, Source C. P. Surender Rao S/o Padma Rao VS A. P. State Cooperative Marketing Federation]
(1) The controlling authority shall record the particulars of each case under Section 7, in Form ‘Q’ and at the time of passing orders shall sign and date the particulars so recorded.
(2) The controlling 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.
(3) Any record, other than a record of any order or direction, which is required by these rules to be signed by the controlling authority, may be signed on behalf of and under the direction of the controlling authority by any subordinate officer appointed in writing for this purpose by the controlling authority.
If a finding is recorded under sub_rule (4) of Rule 11 that the applicant is entitled to payment of gratuity under the Act, the controlling authority shall issue a notice to the employer concerned in Form ‘R’ specifying the amount payable and directing payment thereof to the applicant under intimation to the controlling authority within thirty days from the date of receipt of the notice by the employer. A copy of the notice shall be endorsed to the applicant employee, nominee or legal heirs, as the case may be.
(1) The Memorandum of appeal under sub_section (7) of Section 7 of the Act shall be submitted to the appellate authority with a copy thereof to the opposite party and the controlling authority either through delivery in person or under registered post acknowledgment due.
(2) The Memorandum of appeal shall contain the facts of the case, the decision of the controlling authority, the grounds of appeal and the relief sought.
(3) There shall be appended to the Memorandum of appeal a certified copy of the finding of the controlling authority and direction for payment of gratuity.
(4) On receipt of the copy of Memorandum of appeal, the controlling authority shall forward records of the case to the appellate authority.
(5) Within 14 days of the receipt of the copy of the Memorandum of appeal, the opposite party shall submit his comments of each paragraph of the memorandum
Where an employer fails to pay the gratuity due under the Act in accordance with the notice by the controlling authority under Rule 17 or Rule 18, 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 controlling authority in duplicate in Form ‘T’ for recovery thereof under Section 8 of the Act.
Display of Abstract of the Act and the Rules. [x x x]
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