Gratuity Act 1972
Rohit Gupta
(Querist) 18 January 2010
This query is : Resolved
Regards applicability of the said Act, it is mentioned that:
1. Every shop or estabalishment within the meaning of any law for the time being in force in relation to shops and establishments in a state, in which at least 10 persons are employed, or were employed, on any day of the preceding 12 months.
Would that mean that literally every shop say stationary or grocery shop even would be covered under this??
2. Formula for computation of gratuity in case of piece-rated employees??
Please quote relevant sections forming your opinion.
Thanks.
R.R. KRISHNAA
(Expert) 18 January 2010
Well, as regards your first question, all commercial establishments would be covered by the gratuity act.
As regards your second question, the formula is below:-
The daily wages in respect of the piece rated employees are to be computed on the average of the total wages received by an employee for a period of three months. The average of the total wages of the last three months is to be determined by dividing total wages by the number of days he worked and not the number of days or even the number of working days in the said period of three months. The daily wages to be ascertained are thereafter to be multiplied by the number of completed years of service to find out the total amount of gratuity payable under the act.
I hope this clarifies your queries.
Rohit Gupta
(Querist) 18 January 2010
Thanks Krishnaa!!
Also tell me if an agreement between the employer and employee can avoid this act.
