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Gratuity act

medharoy (student) (52 Points)

26 July 2013

Mr. x has a manufacturing company having 100 employees. outside the premises of the factory the owner has opened commercial establishments employing 3 people. so i want to know if there is any provision which which says that the commercial establishment employees can get gratuity. please help urgent

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CA Dhruva Kalamanji (Chartered Accountant ) (1996 Points)
Replied 26 July 2013

Accoriding to section 1 (3) (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;

IN MR.X CASE

there is only 3 employees there fore the act is not applicable to MR.X's commercial establishment

EXPL: an establishment should have 10 or more employee. not the employer (owner) of the establishment..

each establishment is different in consideration even though the owner is same