Gratuity Act

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Rohit Gupta (Querist)
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18 January 2010 Regards applicability of the said Act, it is mentioned that:

1. Every shop or estabalishment within the meaning of any law for the time being in force in relation to shops and establishments in a state, in which at least 10 persons are employed, or were employed, on any day of the preceding 12 months.

Would that mean that literally every shop say stationary or grocery shop even would be covered under this??

2. Formula for computation of gratuity in case of piece-rated employees??

Please quote relevant sections forming your opinion.

Thanks.

Rasesh

Rasesh (Expert)
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26 January 2010 There is a recent case judgement which states that gratuity / pf and compliance of other statutory liabilities would be the responsibility of the principal. Hence, even in case of piece-rated employees (appointed through a contractor) would be the responsibility of the principal employer. I am not able to recollect the judgement details and If i get the details, will post back on this query.

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