Dear All,
Is it mandatory for all organizations to provide gratuity? What are the general rules regarding gratuity provisions? Is it optional for organizations or mandatory? Are there any legal implications if an organization does not have a gratuity scheme?
Thanks,
James
From India
Acknowledge(0)
Amend(0)
Is it mandatory for all organizations to provide gratuity? What are the general rules regarding gratuity provisions? Is it optional for organizations or mandatory? Are there any legal implications if an organization does not have a gratuity scheme?
Thanks,
James
From India
Acknowledge(0)Amend(0)
Gratuity is manadatory for all factories, shops and establishments employing ten or more persons and paybale to an employee who compelted a continuous servcie of five years. B.Saikumar Mumbai
From India, Mumbai
Acknowledge(0)Amend(0)
1931From India, Mumbai
Acknowledge(0)Amend(0)
Dear Friend, Please find the attachment of Gratuity Act.., May it will be useful to you..
From India, Hyderabad
Acknowledge(0)Amend(0)
From India, Hyderabad
Acknowledge(0)Amend(0)
The applicability of the act is: Every factory, mine, oil field, plantation, port, railways, company, shop, establishment, or educational institution employing 10 or more employees has to provide gratuity.
This act is not applicable to apprentices or persons who hold civil posts under the Central government or state government.
From India, Madras
Acknowledge(0)Amend(0)
This act is not applicable to apprentices or persons who hold civil posts under the Central government or state government.
From India, Madras
Acknowledge(0)Amend(0)
Dear All,
Query regarding gratuity is aptly covered. However, in any of the types of organizations mentioned therein, if the employment service pattern is on a contractual basis, for example, 2 to 3 years, then does this statutory requirement apply even if the renewal of contract employment is initiated on the succeeding day of the previous contract expiry date, as it technically amounts to a continuation of service.
Kindly clarify, please.
Rao
From India, Mumbai
Acknowledge(0)Amend(0)
Query regarding gratuity is aptly covered. However, in any of the types of organizations mentioned therein, if the employment service pattern is on a contractual basis, for example, 2 to 3 years, then does this statutory requirement apply even if the renewal of contract employment is initiated on the succeeding day of the previous contract expiry date, as it technically amounts to a continuation of service.
Kindly clarify, please.
Rao
From India, Mumbai
Acknowledge(0)Amend(0)
If an employee joins a firm on "X" day, works there for 1.5 years, quits this firm to join another, and rejoins the previous firm in a span of 45 days on "Y" day, the 5-year period will be considered from day "X" or day "Y".
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)
Hi James
(1) Gratuity 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) Gratuity 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.]
From India, New Delhi
Acknowledge(0)Amend(0)
(1) Gratuity 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) Gratuity 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.]
From India, New Delhi
Acknowledge(0)Amend(0)
One organization has promoted their employee but reduced his DA allowance, and in turn, that impacts Gratuity and PF contribution. What is the recourse for the employee? The employee tried to talk to management, but they asked him to resign if he is not happy with the change in the salary structure. He was also told that this is a private organization hence it is not binding on them to pay gratuity to employees. Please let me know if the employee can take any legal route.
From India, Pune
Acknowledge(0)Amend(0)
From India, Pune
Acknowledge(0)Amend(0)Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc