Dear Sir,
I work for a big company whose Head Office is in Korea and has a liaison office in India with 5 employees. Although the global operations employ more than 5000 individuals, the company has been operating in India for the past 7 years. I have been with the company since its inception on 01/08/2007.
I am inquiring about my eligibility for Gratuity as I have been working for more than five years at the company.
Looking forward to a solution.
Regards, Imran Umar
From India, New Delhi
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I work for a big company whose Head Office is in Korea and has a liaison office in India with 5 employees. Although the global operations employ more than 5000 individuals, the company has been operating in India for the past 7 years. I have been with the company since its inception on 01/08/2007.
I am inquiring about my eligibility for Gratuity as I have been working for more than five years at the company.
Looking forward to a solution.
Regards, Imran Umar
From India, New Delhi
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Dear Imran,
Gratuity is not applicable to you... let's see how it is...?
For running the business, every employer has to register their company under "The Companies Act, 1956" as they need to obtain a company incorporation certificate. Even though, if any company is an MNC and wants to start its business in India, they have to register separately in India, and all laws shall be applicable to them as per Indian laws. Additionally, all Indian laws shall be applicable to their employees as well, whether they are working in India, on Indian payroll, or getting paid in Indian currency. This does not include the rest of the employees who are working globally, as they cannot be treated as a whole. They shall be treated separately by country since every country has different laws.
Now, the answer to your query is here. Your company has 5 employees in India (as mentioned above, the rest cannot be considered as they are not part of the Indian company).
According to "The Payment of Gratuity Act, 1972," your company is not eligible for gratuity as it is applicable to establishments with 10 or more employees. For more details, please refer to the below clause no. 3 sub-rule B:
(b) every shop or establishment within the meaning of any law currently in force related to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
From India, Mumbai
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208Gratuity is not applicable to you... let's see how it is...?
For running the business, every employer has to register their company under "The Companies Act, 1956" as they need to obtain a company incorporation certificate. Even though, if any company is an MNC and wants to start its business in India, they have to register separately in India, and all laws shall be applicable to them as per Indian laws. Additionally, all Indian laws shall be applicable to their employees as well, whether they are working in India, on Indian payroll, or getting paid in Indian currency. This does not include the rest of the employees who are working globally, as they cannot be treated as a whole. They shall be treated separately by country since every country has different laws.
Now, the answer to your query is here. Your company has 5 employees in India (as mentioned above, the rest cannot be considered as they are not part of the Indian company).
According to "The Payment of Gratuity Act, 1972," your company is not eligible for gratuity as it is applicable to establishments with 10 or more employees. For more details, please refer to the below clause no. 3 sub-rule B:
(b) every shop or establishment within the meaning of any law currently in force related to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months.
From India, Mumbai
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