Discuss in detail where the payment of Gratuity Act, 1972 is applicable.

Applicability of the Payment of Gratuity Act, 1972 The Act applies to

  1. Every factory, mine, oil field, plantation, port and railway company;
  2. Every shop or establishment governed by the Shops and Establishments Act of the State, in which 10 or more persons are employed or were employed on any day of the preceding 12 months;
  3. Any other establishment or class of establishments in which 10 or more persons are employed or were employed on any day of the preceding 12 months, which the Central Government may specify by notification.

A shop or establishment to which the Act has become applicable shall continue to the-governed by the act notwithstanding that the number of persons employed therein at-any time after the Act has become so applicable falls below 10.

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