Our organisation is a registered non-profit with 13 employees on payroll. Do we need to legally make provision for gratuity, even if no one has completed 5 years yet? What does the law say about gratuity for small organisations like ours?
Under Payment of Gratuity Act 1972, an employer who employs 10 or more to provide for Gratuity. This obligation would continue even if subsequently the no falls below 10.
In the instant case, since you have 13 employees, you are covered by the Gratuity Act. Gratuity needs to be provided in books or can be funded through an insurance service provider and also claimed from your donor.
CS Sharad Bhargava