Menu
keyboard_backspace

Q. Human Resource / Employment

Placeholder image

Anonymous

posted 2 months ago

Q.Human Resource / Employment
Would want to know if I am eligible for Gratuity?
I am working for a non profit organisation where there are 2 paid employees and 10 unpaid directors. I have recently put in my papers after completing 5 years and 1 month of service with the organisation. Will I be eligible for Gratuity in my case?
Also what should my next step be if the organisation refuses to pay gratuity to me. Thanks.

Please do not provide your contact details here. We share your contact details on demand from the client.

Your Registration is Incomplete. Please Complete the Registration

Sorry, Your Profile is not activated.

Sorry, You can't respond to the Question as your account has been blocked.

Response is Required

Response should be with in 4294967295 characters

~ and ` characters are not allowed

Symbols are not allowed (Excluding #)

# Symbols is required

Shreyash Mohta

Experience: 1 Year(s)

Responded 2 months ago

View All Answers

A. ) 1) The Payment of Gratuity Act 1972 applies to the whole of India and so far as it relates to ports and plantations it does not apply to the State of Jammu and Kashmir.

2) It applies to:

(a) every factory, mine, oilfield, plantation, port and railway company.

(b) Every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishment in a State, in which 10 or more persons are or were employed on any day in the preceding 12 months.

(c) Such other establishments or class of establishment, in which 10 or more employees are or were employed on any day in the preceding 12 months, as the Central Government may notify in this behalf.

3) Any shop or establishment shall continue to be governed by the Act even if the no. of its employees comes below 10 persons at any time in the future.

Applicability to NGOs

4) Public charitable and religious trusts are also covered by this Act, provided that they are shops or establishments within the meaning of the Shops and Establishment Act applicable to their area of operation and that 10 or persons have been employed by them on any day in the preceding 12 months.

5) A division bench ruled that merely because an NGO, which is registered as a society, is run with the aid of the government it will not be exempted from the definition of industry.

Thanks
Adv. Shreyash Mohta

Placeholder image

Anonymous

Replied 2 months ago

My question is in an organisation where there are 2 paid employees and 10 un paid directors who have come together to form the association; in such a set up is Gratuity applicable?

Placeholder image

Shreyash Mohta

Experience: 1 Year(s)

Replied 2 months ago

The terminology used int he gratuity act is "ten employees" no where does it mention that the employees shall be paid or not.
Given the circumstance your organisation shall be liable to pay gratuity.

Reply is Required

Reply should be less than 4294967295 characters.

Helpful
Helpful
Share
Talk to a Lawyer
Post Your Matter
Request Callback
Contact Us