Dear All,
I need your valuable advice as i am facing some issues related to Gratuity in our company.
Mr. X has joined the company on 03.06.2009 and retired on 31.03.2022 and after that we have hired him as a consultant and his contract for consultant has also been terminated. Now Mr. X is demanding for his Gratuity for the tenure when he was a direct employee.
Our company is not covered under Payment of Gratuity Act, So can it be compulsory for a company to give the gratuity or else what are the problems which we face if we don't give the gratuity.
Please advice for the above issue.

From India, Kolkata


What is the size of your Organisation. You have not mentioned how employees are working in your office.

Organisations with a workforce of 10 employees on a single day in the preceding 12 months are liable to pay gratuity. If the number of employees of the same organisation reduces to under 10, it will still have to pay the gratuity, as per regulations of the Act.

From India, Madras
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