This Act applies to every shops or establishments within the meaning of any law for the time being in force in a State, in which 10 or more persons are employed or were employed on any day of the preceding 12 months
A shop or establishment to which this Act has become applicable shall continue to be government under this Act notwithstanding the number of persons employed therein at any time after it has become applicable.
ELIGIBILITYEvery employee shall be eligible for the gratuity if he/she has completed 5 years of continuous service.
If the person has worked for 5 years and 6 months, then he is deemed to have worked for 6 years but less than 6 months not to be considered The gratuity shall be payable to an employee on termination of his employment after he has rendered continuous service for not less than 5 years or, On his superannuation, or On his retirement, or where his death or total disablement the condition of 5 years complete service will not be applicable For every completed year of service or part thereof in excess of six monthsthe employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned.