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Some of our employees are working from home whereas some work in the field for canvassing and promotion of the sale of the products of the Company. Will such employees be entitled to gratuity - The Payment of Gratuity Act, 1972

 Yes. The field worker visiting customers at their houses and canvassing and doing the business by selling the insurance policies and collecting the premium amount from the customers and depositing ultimately in the office will be performing manual work and clerical work and, thus, will fall within the definition of 'employee' under the Payment of Gratuity Act and will be entitled to gratuity.1 The Karnataka High Court has held that the workers covered under Beedi Cigar Workers (Conditions of Employment) Act, though not working at the establishment but at their homes will also be entitled to gratuity.2Yes. The field worker visiting customers at their houses and canvassing and doing the business by selling the insurance policies and collecting the premium amount from the customers and depositing ultimately in the office will be performing manual work and clerical work and, thus, will fall within the definition of 'employee' under the Payment of Gratuity Act and will be entitled to gratuity.1 The Karnataka High Court has held that the workers covered under Beedi Cigar Workers (Conditions of Employment) Act, though not working at the establishment but at their homes will also be entitled to gratuity.2

  1.  United India Insurance Co. Ltd. vs, H.K. Khatua, 1984 Lab IC 33.  

  2.  Bagi Beedi Factory vs, Appellate Authority, 1998 LLR 23 (Karn HC).

THE PAYMENT OF GRATUITY ACT, 1972

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