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What are the obligations of the employer in respect of the employees claim for payment of gratuity?

(a) As soon as gratuity becomes payable to the employee, the employer has to determine the amount of gratuity and inform the employee as well as the Controlling Authority about it in writing. He shall pay the amount of gratuity within thirty days.
(b) If the employer receives an application from the employee and accepts his claim, the employer has to inform the employee in Form L about the amount of gratuity and the proposed date of payment thereof, within 15 days of the receipt of the application.
(c) If the employer does not accept the claim of the employee, he has to inform the employee in Form M about the reason why the claim is not accepted by him, within 15 days of the receipt of the application.
(d) The employer has to pay the amount of gratuity in cash or, if so desired by the employee, by Demand Draft or Bank Cheque. If the employee so desires and the amount is less than RS.1,000, payment may be made by postal money order after deducting the postal money order commission thereof from the amount.

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