According to Payment of Gratuity Act, 1972, the condition of 5 years continuous service is not necessary if services are terminated due to ______.
A
fraud
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B
death or disablement
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C
re-employment
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D
accident
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Solution
The correct option is B death or disablement
According to Payment of Gratuity Act, 972, the condition of 5 years continuous service is not necessary if services are terminated due to death or disablement.
Gratuity is one of the
retirement benefits received by the employees when they leave a company. Gratuity payable should not exceed Rs.1000000.Every
employee irrespective of his wages is entitled to receive gratuity
after he/she has rendered continuous service for 5 years or more.Every
employer of a shop or establishment, employing 10 or more persons
comes within the purview of the Payment of Gratuity Act, 1972.