I work for a startup that is a subsidiary of a listed company. Currently, in the startup, we have 7 employees, out of which 4 have been transferred from the parent company and have been working there for more than 5 years. The other 3 are new employees. We plan to have around 50 employees by the year-end and a total of 150 by the end of 2 years. Currently, deductions are being made from our CTC for gratuity.
Gratuity Act Applicability
My queries are as follows: Is the Gratuity Act applicable to this startup, given that we have only 7 employees as of now? If it is not applicable, then what happens to the deduction on account of gratuity for the old employees?
Request to please answer.
From India, New Delhi
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Gratuity Act Applicability
My queries are as follows: Is the Gratuity Act applicable to this startup, given that we have only 7 employees as of now? If it is not applicable, then what happens to the deduction on account of gratuity for the old employees?
Request to please answer.
From India, New Delhi
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As per statutory regulations, a minimum of 10 employees is necessary. In your case, there are only 7 employees, but since your employer is deducting some amount in the name of gratuity, you can claim gratuity from the employer.
Thanks and Regards,
Narendar
From India, Hyderabad
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2Thanks and Regards,
Narendar
From India, Hyderabad
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt