The Payment of Gratuity Act, 1972 has made provision for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto. This Act applies to 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 and such other establishments or class of establishments, in which ten or more employees are employed, or were employed, on any day of the preceding twelve months. The Act provides that Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years.
