Rules 2026 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter IV of the Uttar Pradesh Code on Social Security Rules, 2026 (rules 51 to 58) tells an employer in Uttar Pradesh how to take a gratuity nomination in Form-XI, how to react within fifteen days to a Form-XII application with a notice in Form-XIII, how payment is made, and what happens before the competent authority and the appellate authority if the claim is disputed.
The employee nominates in Form-XI and applies in Form-XII, ordinarily within thirty days of the gratuity becoming payable. The employer must issue a Form-XIII notice within fifteen days of receiving the application, fixing a payment date not later than the thirtieth day after receipt. Disputes go to the competent authority in Form-XIV within one year, and appeals to the appellate authority, which decides within six months.
The rule set
This article covers the Uttar Pradesh Code on Social Security Rules, 2026, as notified by notification no. 1431/XXXVI-3-2026-1399661 dated 27 August 2026. Later amendments and State notifications under these rules should be checked in the State Gazette. Under rule 1(3) the rules "shall come into force with effect from the date of its publication in the official Gazette". The notification and the State Boards are covered in our first article on these rules.
The Central rules on gratuity are explained in rules 31 and 32, rule 33 and the gratuity forms of those rules. Uttar Pradesh uses its own rule and form numbers. Since gratuity is a payroll liability, a payroll compliance audit will usually look at nominations and notices together.
Rule 52: nomination in Form-XI
A nomination is made in Form-XI and submitted in duplicate to the employer by personal service after taking a receipt, by registered post acknowledgement due, or electronically.
- An employee already in employment for a year or more on the date of commencement of the rules who has not nominated submits ordinarily within ninety days from that date.
- An employee who completes one year of service after commencement submits ordinarily within thirty days of completing it.
- A late nomination is accepted if reasonable grounds for the delay are shown, and no accepted nomination is invalid merely because it was filed late.
- For fixed term employment, the nomination is submitted within one month from the date the employee joins.
Within thirty days of receiving the nomination, the employer verifies the service particulars with the establishment's records and returns the duplicate to the employee, attested, after obtaining a receipt, and records the other copy (rule 52(2)). An employee without a family at the time of nomination submits a fresh nomination in duplicate in Form-XI within ninety days of acquiring a family (rule 52(3)). A notice of modification, including where a nominee predeceases the employee, goes in Form-XI (rule 52(4)). The nomination is signed, or bears the thumb-impression in the presence of two witnesses for an illiterate employee, and takes effect from the date the employer receives it (rule 52(5) and (6)). Rule 51 requires the competent authority to invest a minor nominee's or heir's gratuity in a term deposit with the State Bank of India or a nationalised bank.
Rule 53: application, notice and payment
The employee, nominee, legal heir or an authorised person applies for gratuity in Form-XII, personally, by registered post, electronically or otherwise, ordinarily within thirty days from the date the gratuity became payable. A plain-paper application with the relevant particulars is also accepted. Where the date of superannuation or retirement is known, the employee may apply before thirty days of that date. A fixed-term employee is eligible for gratuity on rendering service under the contract for one year, at fifteen days' wages on the last drawn rate for every completed year of service or part thereof in excess of six months. A late application is entertained if sufficient cause is shown, and no claim is invalid merely for lateness; disputes about it are referred to the competent authority, who disposes of the application within six months, extendable for recorded reasons by up to three months.
Within fifteen days of receiving the application, the employer issues a notice in Form-XIII:
- if the claim is admissible, specifying the amount payable and fixing a payment date not later than the thirtieth day after receipt of the application; or
- if it is not admissible, stating the reasons, with a copy to the competent authority and to the Director General, Labour Bureau, Chandigarh.
Where the claimant is a nominee or legal heir, the employer may ask for evidence of identity or maintainability, and the time limit then runs from when it is furnished. The notice is served personally with a receipt, by registered post acknowledgement due, or electronically. Payment is by demand draft or credit to the bank account of the employee, nominee or heir, with intimation of payment details to the competent authority of the area (rule 53(3)).
| Step | Rule | Form | Period as printed |
|---|---|---|---|
| Nomination, existing employee | 52(1)(a) | Form-XI | Ordinarily within ninety days of commencement of the rules |
| Nomination, new one-year employee | 52(1)(b) | Form-XI | Ordinarily within thirty days of one year of service |
| Employer verifies and returns nomination | 52(2) | Form-XI | Within thirty days of receipt |
| Application for gratuity | 53(1) | Form-XII | Ordinarily within thirty days of the amount becoming payable |
| Employer's notice | 53(2) | Form-XIII | Within fifteen days of the application; payment date not later than the thirtieth day |
| Dispute to competent authority | 55(1) | Form-XIV | Within one year of the gratuity becoming due |
Rules 54 and 55: the competent authority
The State Government appoints by notification a Gazetted Officer holding the post of Assistant Labour Commissioner as Competent Authority for its jurisdiction (rule 54). Under rule 55 the employer, employee or any other eligible person may apply in Form-XIV within one year of the gratuity becoming due; a later application can be entertained if the reasons satisfy the authority. The authority issues a notice in Form-XV to both sides to appear with documents and witnesses; an application is not rejected merely because it is not in the prescribed form. If the employer does not appear after due service, the authority may proceed ex parte; if the applicant does not appear, it may dismiss. An order can be reviewed on good cause shown within thirty days, with not less than fourteen days' notice to the opposite party of the rehearing. If gratuity is found payable, the authority issues a notice in Form-XVI directing payment within thirty days of the employer's receipt.
Rules 56 and 57: appeal
The State Government may appoint, by notification, an appellate authority holding the post of Additional/Deputy Labour Commissioner (rule 56). A memorandum of appeal is submitted in person, by registered post acknowledgement due or electronically, with copies to the opposite party and the competent authority, and must contain the facts, the decision, the grounds and the relief, with a certified copy of the competent authority's finding and direction (rule 57). The opposite party gives comments within fourteen days of receiving the copy. The appellate authority decides within six months, extendable for recorded reasons by not more than three months. If the decision modifies the amount, the competent authority issues a revised Form-XVI notice requiring payment within fifteen days of the employer's receipt.
Rule 58: recovery
If the employer does not pay as directed by the competent authority's Form-XVI notice, the person entitled applies to the competent authority in duplicate in Form-XVII for recovery under section 129 of the Code.
A worked example
A transport company in Varanasi receives a Form-XII application from a retiring clerk. The HR manager checks service records, issues a Form-XIII notice on the eleventh day fixing the payment date inside the thirty-day limit, pays by demand draft, and intimates the competent authority. A second case, a nominee's claim, has the HR manager asking for identity evidence first, and the periods in the rule start when the evidence is furnished.
Common lapses
- No Form-XI nomination on file for employees who crossed one year of service.
- Issuing the Form-XIII notice after fifteen days, or without a copy to the competent authority and the Labour Bureau when the claim is rejected.
- Not paying within the date fixed in the notice.
- Missing the fourteen-day period to comment on an appeal.
Need help with gratuity notices?
If your payroll has gratuity cases open or you want to build a nomination and notice register, our payroll compliance audit can set up the Form-XI to Form-XIII workflow with the printed dates. A short checklist for HR usually removes most disputes.
Key takeaways
- Nomination in Form-XI, application in Form-XII, employer's notice in Form-XIII.
- The notice is due within fifteen days; payment date not later than the thirtieth day after receipt.
- Disputes: Form-XIV to the competent authority within one year; appeal to the appellate authority.
- Appeals are decided within six months, extendable by up to three months.
- Unpaid gratuity can be recovered through Form-XVII under section 129 of the Code.
Read next
- Uttar Pradesh Code on Social Security Rules, 2026: the notification and the State Boards
- Uttar Pradesh Code on Social Security Rules, 2026: maternity benefit and employee's compensation
- Uttar Pradesh Code on Social Security Rules, 2026: forms, registers and returns
- Rule 33 of the Central social security rules: application for gratuity and appeal
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.