10 January 2014
Dear members, I am doing an audit of a Pvt ltd company and wanna know the applicability of Gratuity act to the company. There are 370 employees in this company and the company has not enrolled into gratuity act. so what liability would this company faces for the non compliance of this act
11 January 2014
thanks for your reply sir, but this company isnt registered with gratuity act so calling the valuator isnt possible at this moment. Sir i have calculated all the employees gratuity at 4.33% on their basic salary.only those employees salary if this act is applicable to the company then this would be their liability for the current year.
11 January 2014
sir can you elaborate your answer of actuary valuation. i have already gone through the link and it just says that the employer has to pay gratuity amount to the employee who has completed their 5 years of continuous services. and on the point of applicability it is applicable as the company has 370 employees and the minimum requirement is 10-12 employee at any day of the year.
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