There are ten persons employed in a shop and therefore the Payment of Gratuity Act, 1972, becomes applicable to the shop. After some time, three employees resign from the services of the shop. Resultantly, which one of the following is the correct legal position on the applicability or otherwise of the said Act?
A. The Act will continue to be applicable on the shop
B. As soon as the number of employees of the shop falls below ten, the Act will cease to be applicable
C. The Act is silent about this type of situation
D. The Act will not apply when the number of employees who leave the shop exceed 50%
Answer:A
There are ten persons employed in a shop and therefore the Payment of Gratuity Act, 1972, becomes applicable to the shop. After some time, three employees resign from the services of the shop. Resultantly, which one of the following is the correct legal position on the applicability or otherwise of the said Act?
A. The Act will continue to be applicable on the shop B. As soon as the number of employees of the shop falls below ten, the Act will cease to be applicable C. The Act is silent about this type of situation D. The Act will not apply when the number of employees who leave the shop exceed 50%