Question

Every employer of a shop or establishment, employing ______ or more persons comes whthin the purview of the Payment of Gratuity Act, $1972$.

• A. $1$
• B. $20$
• C. $10$
• D. not applicable

Answer 1

The correct option is C $10$

Every employer of a shop or establishment, employing 10 or more persons comes within the purview of the Payment of Gratuity Act, 1972.In 1972, Payment of Gratuity Act was passed. Gratuity is one of the retirement benefits received by the employees when they leave a company. In order to receive gratuity, an employee must serve 5 years to a company.