Question

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
• B. death or disablement
• C. re-employment
• D. accident

Answer 1

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.