Labour Laws · Labour Legislation
There are ten persons employed in a shop and therefore the Payment of Gratuity Act, 1972, becomes applicable to it. After some time, three employees resign from their services. Which one of the following is the correct legal position regarding the continued applicability of the Act?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The Act ceases to apply when the number of employees leaving exceeds 50%
- 2The Act is silent about this type of situation
- 3As soon as the number of employees falls below ten, the Act ceases to apply
- 4The Act will continue to be applicable to the shop✓
Correct answer
The Act will continue to be applicable to the shop
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