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Gratuity Law For Foreign Companies - CiteHR

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Imran Umar
Dear Sir,
I work for Big company whose Head Office is in Korea, and has a liaison office in India which has 5 employees in India although in the global operations it is more than 5000 employees and is operating in India for past 7 years.
I joined the company from the day one of operations exact date is 01/08/2007.
I would like to check as i have been working for more than five years in the company do i am eligible for Gratuity or not.
Looking forward for some solution.
Regards
Imran Umar

From India, New Delhi
tushar.swar
206

Dear Imran,

Gratuity is not applicable to you... lets see how it is...?

For runing the business, every employer has to be register their company under "The company act. 1956" as they need to take company incorporation certificate. eventhough, if any company is MNC, they wanted to start their business in india, they have to register seperatly in india & all laws shall be applicable to them as per indian laws, as well as all indian law shall be applicable to their employees also, whose are working in indian, or they are on indian payroll, or they are getting paid through indian currency, but not include rest of employee who are working globally, as it can not be treated as wholly, it shall be treated seperatly by country wise, as every country has different laws.

So, now the answer of your query is here, as said that, your company is having 5 employee in india,( as i have mentioned above, rest of all can't be consider as they are not part of indian company).

So, as per " The Payment of Grautity Act. 1972", you company is not applicable for grautity as same shall be applicable to 10 or more employees' establishment. you for more details please refer the below clause no. 3 sub rule,B.

(b) 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 ten or more persons are employed, or were employed, on any day of the preceding twelve months;

From India, Mumbai
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