I work for a startup which is a subsidiary of a listed company.
Currently in the start-up, we have 7 employees out of which 4 have been transferred from the parent company and have been working in the parent company for more than 5 yrs, the other 3 are new employees.
we plan to have around 50 employees by the year end and a total of 150 by the end of 2 yrs.
Currently, deductions are being made from our CTC for gratuity.
My queries are as follows-
Is the gratuity act applicable to the this start-up (since we have only 7 employees as on date)?
If it not applicable then what happens to the deduction on account of gratuity to the old employees?
Request to please answer
From India, New Delhi
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Currently in the start-up, we have 7 employees out of which 4 have been transferred from the parent company and have been working in the parent company for more than 5 yrs, the other 3 are new employees.
we plan to have around 50 employees by the year end and a total of 150 by the end of 2 yrs.
Currently, deductions are being made from our CTC for gratuity.
My queries are as follows-
Is the gratuity act applicable to the this start-up (since we have only 7 employees as on date)?
If it not applicable then what happens to the deduction on account of gratuity to the old employees?
Request to please answer
From India, New Delhi
Acknowledge(0)Amend(0)
As per statutory regulations, a minimum of 10 employees is necessary. In your case, there are only 7 employees, but since your employer is deducting some amount in the name of gratuity, you can claim gratuity from the employer.
Thanks and Regards,
Narendar
From India, Hyderabad
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2Thanks and Regards,
Narendar
From India, Hyderabad
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt