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I worked for a school for 10 years and resigned. That school has less than 10 employees. School management said it won't pay gratuity, citing rules under the Payment of Gratuity Act. However, when I consulted a lawyer in Chennai, he interpreted that the act is applicable for more than 10 people, but it doesn't say that if there are less than 10 people, it is not covered. He mentioned that an employee who is in continuous service in an officer cadre is eligible for gratuity. Can someone clarify this, and if there is any precedent, please let me know.

Additional Query

One more question: Can we add trustees of the school as employees?

From India, Madras
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Thank you for your prompt response. I still have two doubts. My school, which was established exclusively for foreigners and approved by the Government of India around 20 years ago, is experiencing growth only now. Initially, there was only one principal and one teacher, both of whom were foreigners. When I joined in 2002, I took over the administration, and upon my resignation, the school had one principal and six teachers.

Doubt No. 1
My school has never had a staff of more than 10 (including teachers).

Doubt No. 2
There were approximately six managing trustees overseeing the trust. Should they be included in the total count of employees for an organization?

Regards,
Anandan Subramanian

From India, Madras
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Doubt no.1 - If employees strenght less then 10 so as per the act. Act is not applicable, Doubt No. 2 - Only enroll employees
From India, Kolkata
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