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AviRaviKiran (Consultancy)     05 February 2010

Applicability of Gratuity Act - to Company or to Establishme

A company has two branches i.e. "Establishments" -- in two states. There are five employees at one branch and six at the another.
Whether these two branches can be termed as two different "Establishments" under Payment of Gratuity Act? Considering the number of employees ( which is less than ten at each branch/establishment) Whether The Payment of Gratuity Act,1972 will be applicable?  in other words, Whether the Act is applicable to a particular 'Establishment' or to the whole company? I think there is no provision of clubbing the establishments(branches) in the Act.
If the Act is applicable, Which is the "Appropriate Government" as two establishments are located in two different States.
 Pl. Note : These establishments are " commercial offices" and can not be termed as "Factory" under Factories Act by any chance (No chemicals / inflammables / compressor etc.).

Pl. support your views/answers by Case Law if available.


 1 Replies

Sarjooram Sharma (Assistant Labour commissioner)     08 February 2010

In the payment of Bonus Act, branches are covered, but in the gratuity Act such difinition is not given.

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