Hi,
I have a friend who has been working with a private limited company employing fewer than 10 employees for the last 10 years. Since the Gratuity Act specifies a minimum employment of ten people for eligibility for gratuity payment, will my friend and his colleagues be eligible for gratuity payment?
I would appreciate your insights on this.
Regards
From India, New Delhi
I have a friend who has been working with a private limited company employing fewer than 10 employees for the last 10 years. Since the Gratuity Act specifies a minimum employment of ten people for eligibility for gratuity payment, will my friend and his colleagues be eligible for gratuity payment?
I would appreciate your insights on this.
Regards
From India, New Delhi
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The Act is applicable only if there are more than 1o employees hence your friend is not eligible for payment of gratuity
From India, Delhi
From India, Delhi
Dear Arjunsingh,
It is correct that the Payment of Gratuity Act is not applicable to the company of your friends as the company's strength is less than 10. Hence, it is immaterial to think about the payment of gratuity even if services for life have been spent.
KIRAN KALE
From India, Kolhapur
12It is correct that the Payment of Gratuity Act is not applicable to the company of your friends as the company's strength is less than 10. Hence, it is immaterial to think about the payment of gratuity even if services for life have been spent.
KIRAN KALE
From India, Kolhapur
Hello sir, P.G, Act 1972 is only applicable to those industry where more than 10 persons are employed. In this instant case I do not think ur friend is entitled for Gratuity payment.
From India, Koraput
From India, Koraput
Dear Mr. Arjun Singh,
You have not indicated whether the private limited company in which your friend is working is a factory, a mine, an oil field, a plantation, or a shop or establishment. If the private limited company is a factory, mine, or plantation, the restriction of employing 10 persons does not apply. It must meet the definitions under the Factories Act, Mines Act, or Plantation Labour Act. If the company is not one of these, then it must be a shop or establishment, requiring employment of ten or more persons for the Gratuity Act to be applicable. Once ten or more persons are employed, the Gratuity Act applies, regardless of the employee count dropping below ten.
In the case that the private limited company is a shop or establishment, please verify if at any point ten or more persons were employed. If so, the Gratuity Act applies, entitling your friend to gratuity.
V. HARIKRISHNAN
Joint Commissioner of Labour (Retired)
Government of Tamilnadu
Labour Law Consultant
Chennai
From India, Madras
You have not indicated whether the private limited company in which your friend is working is a factory, a mine, an oil field, a plantation, or a shop or establishment. If the private limited company is a factory, mine, or plantation, the restriction of employing 10 persons does not apply. It must meet the definitions under the Factories Act, Mines Act, or Plantation Labour Act. If the company is not one of these, then it must be a shop or establishment, requiring employment of ten or more persons for the Gratuity Act to be applicable. Once ten or more persons are employed, the Gratuity Act applies, regardless of the employee count dropping below ten.
In the case that the private limited company is a shop or establishment, please verify if at any point ten or more persons were employed. If so, the Gratuity Act applies, entitling your friend to gratuity.
V. HARIKRISHNAN
Joint Commissioner of Labour (Retired)
Government of Tamilnadu
Labour Law Consultant
Chennai
From India, Madras
Dear Mr. Harikrishnan,
Thank you very much for your inputs. The firm to which I am referring falls under the Shops & Establishment Act, and I will check the provisions therein. Additionally, as suggested, I will review the relevant details to determine whether the firm has ever employed 10 people in the past.
Thanks again for your inputs.
Regards,
Arjun
From India, New Delhi
Thank you very much for your inputs. The firm to which I am referring falls under the Shops & Establishment Act, and I will check the provisions therein. Additionally, as suggested, I will review the relevant details to determine whether the firm has ever employed 10 people in the past.
Thanks again for your inputs.
Regards,
Arjun
From India, New Delhi
Anyone can explain if employees who are casual or factory workers are also covered for gratuity eligibility? For example, if someone joins as a factory casual worker and after 5 years becomes a company employee, then leaves the organization after 10 years, what will be considered as the date of joining? Will it be the date of joining as a factory casual worker or the date of joining as a company employee?
From India, Mumbai
From India, Mumbai
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