Any establishment which had employed at least 10 persons, whether workers or not, during the 12 months preceding to its liquidation is bound to pay gratuity. This is an amount payable to all employees including managerial staff. It is payable to those who have completed at least 5 years of service and the amount will be equal to 15 days salary for every year of service with the organisation subject to a maximum of Rs 10 lakhs.
Madhu.T.K