The Payment of Gratuity Act from now on will cover societies and trusts employing 10 or more people.
A notification to this effect was issued yesterday.
The notification says trusts or societies registered under the Societies Registration Act or under any other law concerning societies, for the time being in force in any state, in which ten or more persons are or were employed for wages on any day of the preceding 12 months as a class of establishments will be covered under the act.
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The payment of gratuity act is applicable to factories, mines, plantations, oil fields, ports, railway companies, shops and other establishments employing ten or more persons.
Gratuity is payable to every employee other than an apprentice, in an establishment to which the provision of the act applies, on termination of his employment either due to superannuation/retirement or resignation subject to the completion of continuous service for not less than five years, an official press release said.
Gratuity is also payable in case of termination of service due to death or disablement due to accident or disease and there is no condition of the number of years of service in these two contingencies.