Can anyone confirm for me whether the company is not providing ESI, PF, and other benefits (apart from salary) with a minimum of 8-10 employees, even if one employee completes 5 years, does the company need to pay "Gratuity" or not? Or is the employee eligible to ask for "Gratuity" from the company? Please confirm, and if you have any documents or details regarding Government Acts, please provide.
From India, Bangalore
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Payment of Gratuity Act will be applicable to your establishment when there are at least ten employees. If your establishment is a factory, then this minimum requirement of ten employees to be covered is not necessary. It is irrelevant whether the establishment has ESI or EPF.
From India, Kannur
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Please read Payment of Gratuity Act 1972. (With notes, comments n case laws).
From India, Madras
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A factory had 12 employees and POG Act was applicable.Later the number of employees became 8.Will the gratuity Act continues to apply? Varghese Mathew
From India, Thiruvananthapuram
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Once covered by the Act, it will continued to be applicable even if the number of employees fall below 10.
From India, Kannur
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The provision of continuing applicability is in sec 1(3 A) of the Act. This covers only shops and establishments, not factory, plantations, oil fields, ports, or mines. The words "shops" or "establishments" are not defined in the Act.
From India, Thiruvananthapuram
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In respect of factories, oil fields, plantations, etc., the Act is applicable even if there is only one employee. Therefore, the question of falling below 10 will not arise in the case of factories, etc.
From India, Kannur
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