Gratuity - Gratuity Act [Thread 563003]

One employee of the company work since April 2004. Company has not covered in the gratuity act since 2011-12 as company was having less then 10 employees. Now in the year 2011-12 company covered in gratuity act. employee resigned in the year 2015-16. How to calculate gratuity of the employee. assume his basic salary is 25000 at the time of resignation

Applicability of the gratuity act is based on point of time of resignation. Therefore, the fact that the company was out of coverage in the earlier areas will not make any difference to computation of the tragedy. You will be required to pay full graduated to the employee based on the number of years he has actually work.