Hi,
I want to know if the company is established in 2009 and there were less the 10 employees till 2011. The employee leaves the company in 2014, so will he be eligible for gratuity or not?
I came to know that The Payment of Gratuity Act, 1972 is applicable to such other establishments or class of establishments, in which ten or more employees are employed,
Is this correct?
From India, New Delhi
1I want to know if the company is established in 2009 and there were less the 10 employees till 2011. The employee leaves the company in 2014, so will he be eligible for gratuity or not?
I came to know that The Payment of Gratuity Act, 1972 is applicable to such other establishments or class of establishments, in which ten or more employees are employed,
Is this correct?
From India, New Delhi
If the company has been registered under the Shops and Commercial Establishments Act, then only the minimum number of 10 employees will be applicable and in respect of all factories, mines, plantations and oilfield the Act is applicable even if the number of employees is less than 10.
Now, assuming that yours is an establishment other than factory, oil field, mine or plantation, if we work out the applicability of Gratuity Act, we can take the date on which the number of employees became 10 in the year 2011 as the date on which the Act has become applicable to your establishment. When it comes to payment of gratuity, you should consider the actual service from the date of joining and not from the date of coverage. Therefore, if an employee leaves in 2014, he will be eligible for gratuity due to the following reasons.
1. He is an employee of a covered establishment
2. He has worked with the same employer continuously for 5 years
Madhu.T.K
From India, Kannur
Now, assuming that yours is an establishment other than factory, oil field, mine or plantation, if we work out the applicability of Gratuity Act, we can take the date on which the number of employees became 10 in the year 2011 as the date on which the Act has become applicable to your establishment. When it comes to payment of gratuity, you should consider the actual service from the date of joining and not from the date of coverage. Therefore, if an employee leaves in 2014, he will be eligible for gratuity due to the following reasons.
1. He is an employee of a covered establishment
2. He has worked with the same employer continuously for 5 years
Madhu.T.K
From India, Kannur
Thanks a lot sir for your reply. just wanted to confirm one more point - Is there any provision to register under Gratuity Act ? If yes, then what is the procedure of the same. Regards, Toshi
From India, New Delhi
From India, New Delhi
There is no separate registration as such under the Payment of Gratuity Act. However, as per section 4A (3) of the Act, every establishment is required to get registered with the Controlling Authority, the District Labour Officer or the Asst. Labour Commissioner, as the case may be. This is not required for such establishments which do not have any approved gratuity fund or have taken insurance of their gratuity fund. Section 4A insists that every employer to whom the Payment of Gratuity Act applies should insure its gratuity fund with LIC. But this compulsory insurance is applicable only if the state government has notified it as applicable. Until no notification has come, you need not take any separate registration. Once it becomes mandatory that your gratuity fund should be linked to LIC, then obviously a Board of Trustees will be formed and the same will be registered with the controlling authority.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Dear Sir
With reference to your post, "If the company has been registered under the Shops and Commercial Establishments Act, then only the minimum number of 10 employees will be applicable and in respect of all factories, mines, plantations and oilfield the Act is applicable even if the number of employees is less than 10",
Please tell what documentary evidence can be placed before the court, in this regard.
From India, undefined
With reference to your post, "If the company has been registered under the Shops and Commercial Establishments Act, then only the minimum number of 10 employees will be applicable and in respect of all factories, mines, plantations and oilfield the Act is applicable even if the number of employees is less than 10",
Please tell what documentary evidence can be placed before the court, in this regard.
From India, undefined
Sir whatever you posted is an interpretation or is quoted somewhere in the act or in any judgement? Please provide the link if any.
From India, undefined
From India, undefined
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc