A company employing persons in factories, mines and ports claims that Chapter V (Gratuity) of the Code…

Under section 1(4) of the Code, the applicability of each Chapter is as specified in column (3) of the First Schedule. The entry for Chapter V (Gratuity) applies the Chapter, in clause (a), to every factory, mine, oilfield, plantation, port and railway company, and in clause (b), to every shop or establishment in which ten or more employees are employed, or were employed, on any day of the preceding twelve months and to such shops or establishments as the appropriate Government may notify (formerly section 1(3)(a) of the Payment of Gratuity Act, 1972). Railway companies are therefore expressly covered; no notification is needed, and coverage does not depend on government ownership. Section 2(67) defines "railway company" to include any persons, whether incorporated or not, who are owners or lessees of a railway or parties to an agreement for working a railway.