Gratuity was originally, meant to be a token of an employer’s appreciation for the services rendered by his employee. It was in the form of a gift or money. But in present Labour law gratuity has become a legitimate claim of an employee. It is a benefit given to an employee, so that employees do not leave the service of an employer soon, but in a minimum number of years of service.

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Preparation of nomination form

Nomination: -An employee who has completed one years service under an employer should submit in Form ‘F ‘ specifying the nominee or nominees, who shall receive gratuity in the event of death .The nomination in Form ‘F’ or fresh nomination in Form ‘G’ or modification in Form ‘H’ has to be submitted in duplicate .

Calculation of Gratuity.

Calculation: we will calculate Gratuity payable to each employee at the end of every year.