As it is, the answer is 'No' as the total no of employees in your shop is less than 10 as of now.
However, if the number was 10 or more anytime in the past, you are bound to pay gratuity in case of termination now.
From India, Salem
6016However, if the number was 10 or more anytime in the past, you are bound to pay gratuity in case of termination now.
From India, Salem
Learned member has give right guidance to you on the issue.
Section 1 of the act needs to be read carefully to understand whether the Act applies to you.
If there are only 6 employees then act does not apply.
But a reading of the Sec1 would give you a better idea.
Especially if there were in last 12 months more than 10 employees hired by company and now it has reduced to 6.
(1) This Act may be called the Payment of Gratuity Act, 1972.
(2) It extends to the whole of India:
Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir*.
(3) It shall apply to--
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
1[(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.]
(4) It shall come into force on such date2 as the Central Government may, by notification, appoint
From India, Pune
Section 1 of the act needs to be read carefully to understand whether the Act applies to you.
If there are only 6 employees then act does not apply.
But a reading of the Sec1 would give you a better idea.
Especially if there were in last 12 months more than 10 employees hired by company and now it has reduced to 6.
(1) This Act may be called the Payment of Gratuity Act, 1972.
(2) It extends to the whole of India:
Provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir*.
(3) It shall apply to--
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
1[(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.]
(4) It shall come into force on such date2 as the Central Government may, by notification, appoint
From India, Pune
The Acts and Laws are applicable to an establishment. Your shop/business could be fall under the Shops & Commercial Establishment Act owing to nature of business. The S&E Act is not applicable as you have engaged 6 people compared 10 or more people.
Since your shop is not an "Establishment", so the Gratuity Act is not applicable at present juncture.
From India, Mumbai
Since your shop is not an "Establishment", so the Gratuity Act is not applicable at present juncture.
From India, Mumbai
Gratuity means showing your gratitude towards your employee worked many years (atleast more than five years).... in your establishment.... An act of like saying vote of Thanks for the valuable service given by the worker towards that Estt..giving in form of cash award... So for this kind deed did not require any Act and some rules are required necessary in your support.
So give some amount to that leaving employee for his service to your Estt.
I saw many shops having single employee that worke30yrs ....40yrs or so in the same shop like fancy.. Kirana... And onion mirch wholesale shops... Usually having one or two reliable long standing employees emotionally attached to those shops.. I saw owners giving the large amounts to that reliable retiring employees...
So give cash voluntarily.... No Act or law stops your generousity.... Sir pls go ahead. Pls realise all these laws are framed in accordance with our needs andcomforts.like below 10employees gratuity not applicability.... Bonus not necessary etc..
These are welfare laws... depends upon situational necessity.. Never think if law is there I will pay unless I won't.. Actually even many law binding deeds negative by many employers...
So do it as much as you can help in cash to those retiring employees.. All the Best.
From India, Nellore
So give some amount to that leaving employee for his service to your Estt.
I saw many shops having single employee that worke30yrs ....40yrs or so in the same shop like fancy.. Kirana... And onion mirch wholesale shops... Usually having one or two reliable long standing employees emotionally attached to those shops.. I saw owners giving the large amounts to that reliable retiring employees...
So give cash voluntarily.... No Act or law stops your generousity.... Sir pls go ahead. Pls realise all these laws are framed in accordance with our needs andcomforts.like below 10employees gratuity not applicability.... Bonus not necessary etc..
These are welfare laws... depends upon situational necessity.. Never think if law is there I will pay unless I won't.. Actually even many law binding deeds negative by many employers...
So do it as much as you can help in cash to those retiring employees.. All the Best.
From India, Nellore
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Gratuity notification amendment in definition of employees.pdf