Gratuity Claim for closed Establishment

Even though the fund was administered by LIC, the Company ought to have established a Trust - Gratuity Trust. LIC should be able to help you with the trustees and their addresses. You may also file an application before the Controlling Authority under the Payment of Gratuity Act (usually the regional Labour Commissioner or Assistant Labour Commissioner. Please approach the local labour office for necessary forms and guidance.

vasudevan

While joining in the group gratuity fund with LIC, the liability of paying gratuity to employees is shifter to the LIC. As the company has been closed, the proportonate gratuity shll be payable by the LIC, for which  a claim to be filed with the controlling authority ie. the Asst. Labour commissioner or the jurisdiction.

Gratuity trust is created for situation like this.

You may please approach Authority under Payment of Gratuity Act who is normally Assistant Commissioner of Labour in your region. You may first meet the LIC authorities take the details of fund/reference numbers etc so that you can mention the same in the claim form to be filed before the ACL. Details of the trustees also will be available with LIC. Normally the trust will be formed with the equal number of representatives from employer and employee. If the trustees are available they can also meet the ACL/LIC and explain the situation and get relief.