Am I eligible for gratuity in a company with few employees?

I have been working for over 20 years in a non-profit organization and have been told that I will not be receiving gratuity because the company has never given it to anyone and has no written policy regarding gratuity. The company is a consulting center with only 5-6 salaried employees at a time, and the rest (about 35-40 people) work on a consultancy basis. Am I eligible for gratuity, considering the law states that there should be at least 10 employees in the company for gratuity?

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Advocate By LEAD INDIA Answered: 04 Mar 2025

Since your company does not have a written policy and has fewer than 10 employees, you are not eligible for gratuity under the Payment of Gratuity Act. However, if your company had paid gratuity to other employees before, you might have a case. Consult a labor lawyer to explore your options. For further legal assistance contact us on our helpline number.
 

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