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The Bangalore Employers Association (BEA), established by R&M Associates, has filed a writ petition challenging the Karnataka Compulsory Gratuity Insurance Rules, 2024. Notably, these rules were officially published in the Karnataka Gazette dated January 10, 2024.
The outlined rules mandated that all employers in Karnataka, except establishments under the jurisdiction of the State or Central Government, were required to secure an insurance policy within 60 days to safeguard their gratuity liabilities.
This unexpected notification caused significant challenges for many employers, as the financial burden of making the 1st premium payment for the new insurance policy proved unfeasible, potentially threatening the stability and viability of existing industries.
Accordingly, the Bangalore Employers Association (BEA) filed a writ petition (WP 10140/2024) in the Karnataka High Court in March 2024, challenging the aforementioned rules.
We are glad to inform that in the hearing held on 28/4/25 the High Court have passed an interim order that there should not be any coercive measures to be taken on the members of BEA who also have filed separately the writ petition that the are permitted to take a gratuity insurance policy covering employees wo have completed five years and more only.
We are pleased to inform you that, during the hearing held on April 28, 2025, the High Court issued an interim order. The court directed that no coercive measures should be taken against members of the Bangalore Employers Association (BEA) who have filed separate writ petitions. Furthermore, the members are permitted to obtain a gratuity insurance policy covering only employees who have completed five years or more of service.
We will keep you updated you on the developments as and when it occurs. Do reach out to us if you need more information about Bangalore Employers Association (BEA) – rma@r-massociates.com