Gratuity act

Labour & Industrial 560 views 2 replies

medharoy

student

52 Points Joined July 2012

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

Replies (2)

CA Dhruva Kalamanji

Chartered Accountant

1996 Points Joined April 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