GRATUITY SCHEME MANAGEMENT

The Hobbiton Gratuity Scheme is a product that allows an employer to make adequate provisions to cater for the benefit payment an employee receives at the end of their employment contract. Employers must meet all contractual obligations to its staff as and when they arise. One of the most important of these obligations is the gratuity where it forms part of the contract of employment. The gratuity benefit is payable on cessation of employment at the end of the employment contract or at the members’ death.

Hobbiton Investment Management takes away the administrative burden of managing gratuity schemes in-house, providing bespoke administration services allowing employers to focus on their core activities. Gratuity liabilities can grow to be substantial as the employer organization grows and develops. Hobbiton will perform the organization’s administrative obligations on their behalf and ensure members of the employer’s gratuity scheme receive the correct benefit at the correct time, while complying with all relevant laws and regulations.

The Hobbiton Gratuity Scheme Fund is managed as a 100% money market based fund in order to ensure capital preservation and provide the necessary liquidity to meet liabilities as they crystallize. Interest earned is ploughed back into the fund as income to ensure continued growth.