Assertion :Merit rating of an employee is the process of evaluating the employees performance on the job in terms of the requirements of the job. Reason: Employees' merit rating is a technique for fair and systematic evaluation of an employee's capacities and abilities and performance on the specific job,
A merit rating is a score that each state assigns to employers based on their employment stability and employee turnover. The state then uses the merit rating to levy state unemployment taxes on each employer. Companies with lower ratings will have to pay lower unemployment tax percentages. Therefore statement ‘b’ is true.