07 April 2012
Hello all, I have one query about gratuity Act. In my company there are only 8 empoloyees, but if any employees have completed 5 years than is gratuity act is applicable to us??
07 April 2012
You have to understood the fact that Gratuity is not coming under the purview of EPF Act. It is a separate legislation applicable to all the company having more than 20 employees.
Eligibility of Gratuity will only arise only in case of resignation / termination / discharge of an employee and that too gratuity is eligible only for employee who has completed 5 years of service in a company.
It is based on 15 days salary per year of service. The max amount of Gratuity that one can get is Rs 10 lakhs.
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