Varun, an employee in a factory employing more than 60 workers was about to complete 5 years of continuous service for becoming entitled to gratuity. But he joined with the other workers in strike, which resulted in brea

CS Professional · Labour Laws & Practice · PYQS · June 2024
Varun, an employee in a factory employing more than 60 workers was about to complete 5 years of continuous service for becoming entitled to gratuity. But he joined with the other workers in strike, which resulted in break in service, i.e. 18 days short of continuous period of 5 years. The factory management decided to treat it as illegal strike and terminated Varun among others from the service after complying with the procedure. (i) Whether payment of Gratuity Act is applicable to the factory ?

Answer & Explanation:

As per Section 1 (3) of the Payment of Gratuity Act, 1972, this Act shall apply 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 establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months; (c) 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. Therefore, the Act is applicable to the factory.

Topics: Payment of Gratuity Act, 1972

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