Santhi was employed in a factory since 2008 when the total employees in the factory were 54. She resigned from that employment on 31st March, 2023 after 15 years of continuous service. The factory owner denied to pay the

The Payment of Gratuity Act, 1972 provides for a scheme of compulsory payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments on the termination of his employment after he has rendered continuous service for not less than five years on his superannuation or on his retirement or resignation or on his death or disablement due to accident or disease. The Payment of Gratuity Act, 1972, shall apply to: every factory, mine, oil-field, plantation, port and railway company; 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; such other establishments or class of establishments in which ten or more employees are employed or were employed on any day of the preceding twelve months as the Central government may, by notification, specify in this behalf. A shop or establishment once covered shall continue to be governed by the Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten. In light of the above-mentioned provisions, Santhi will succeed in her claim irrespective of the fact whether the number of required employees/workers falls below ten.