under The Payment of Gratuity Act, 1972
The Act extends to the whole of India. Provided that in so far as it relates to plantations or
ports, it shall not extend to the State of Jammu & Kashmir. [Section 1(2)].
The Act applies to:
♦ Every factory, mine, oilfield, plantation, port and railway company;
♦ Every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a state, in which 10 or more persons are employed, or were employed, on any day of the preceding twelve months;
♦ Such other establishments or class of establishments, in which 10 or more employee are employed, or were employed on any day of the preceding twelve months, as the Central Government, specify in this behalf. [Section 1(3)]
♦ A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten. [Section1 (3 A )]
The expression ‘law‘ used in Section 1(3)(b) means any law in respect of shops, establishments – commercial or non-commercial. (K. Gangadhar Vs The Appellate Authority, (1993) 66 FLR 648(AP).
The provisions of Section 1(3)(b) of the Act are very much comprehensive. It also includesMunicipal Board. (Municipal Board Vs Union of India, (1993) 67 FLR 973 All)