Gratuity in Jewelry Stores with Over 10 Employees: Is It Mandatory or Can It Be Denied?

Gratuity for Jewelry Stores with More Than 10 Employees

Is gratuity for a jewelry store with more than 10 employees compulsory? And on what grounds can it be rejected?

Applicability of the Payment of Gratuity Act 1972

As per Section 3(b) of the Payment of Gratuity Act 1972, the act applies to every shop or establishment within the meaning of any law currently in force in relation to shops and establishments in a State. This applies to places where ten or more persons are employed, or were employed, on any day of the preceding twelve months.

Therefore, according to the statute, the liability exists. It is important to note that in this forum, unethical practices cannot be expected.