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B Com Exam  >  B Com Tests  >  Test: Payment of Gratuity Act(1972) - B Com MCQ

Test: Payment of Gratuity Act(1972) - B Com MCQ


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10 Questions MCQ Test - Test: Payment of Gratuity Act(1972)

Test: Payment of Gratuity Act(1972) for B Com 2024 is part of B Com preparation. The Test: Payment of Gratuity Act(1972) questions and answers have been prepared according to the B Com exam syllabus.The Test: Payment of Gratuity Act(1972) MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Payment of Gratuity Act(1972) below.
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Test: Payment of Gratuity Act(1972) - Question 1
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What is the scope of the Payment of Gratuity Act, 1972?

Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 1
The Payment of Gratuity Act, 1972 extends to the whole of India except the state of Jammu and Kashmir. It applies to various types of establishments including factories, mines, oilfields, plantations, ports, railway companies, shops, and more. This Act ensures that employees receive gratuity upon the termination of their employment after rendering continuous service. It's important to note that the Act does not extend to Jammu and Kashmir in relation to plantations or ports.
Test: Payment of Gratuity Act(1972) - Question 2
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Which of the following establishments is NOT covered by the Payment of Gratuity Act?

Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 2
The Payment of Gratuity Act applies to various establishments, including factories, mines, oilfields, plantations, ports, railway companies, and shops. However, according to Section 1(3) of the Act, it applies to establishments where ten or more persons are employed, or were employed, on any day of the preceding twelve months. Since the mine in this case has only 5 employees, it falls below the threshold and would not be covered by the Act.
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Test: Payment of Gratuity Act(1972) - Question 3
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Who qualifies as an "Appropriate Government" under the Payment of Gratuity Act?

Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 3
The "Appropriate Government" under the Payment of Gratuity Act depends on the type of establishment. In cases like factories, mines, major ports, and more under the control of the Central Government, the Central Government is the Appropriate Government. In other cases, the State Government holds that position. This differentiation ensures effective administration and enforcement of the Act.
Test: Payment of Gratuity Act(1972) - Question 4
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How is "Family" defined in relation to an employee under the Payment of Gratuity Act?
Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 4
"Family" in relation to an employee under the Payment of Gratuity Act consists of the employee's spouse, children (whether married or unmarried), dependent parents, the dependent parents of the employee's spouse, and the widow and children of the employee's predeceased son. This definition considers the close family members and dependents for the purpose of gratuity.
Test: Payment of Gratuity Act(1972) - Question 5
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What does "Retirement" mean under the Payment of Gratuity Act?
Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 5
"Retirement" under the Payment of Gratuity Act means the termination of an employee's service other than on superannuation. It encompasses various reasons for the end of employment, including resignation, retirement, or termination for reasons other than superannuation.
Test: Payment of Gratuity Act(1972) - Question 6
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What is the maximum amount of gratuity payable to an employee under the Payment of Gratuity Act?
Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 6
The maximum amount of gratuity payable to an employee under the Payment of Gratuity Act is Rs. 3,50,000. This means that even if an employee is eligible for a higher amount based on their salary and service, the gratuity will be capped at this specified limit.
Test: Payment of Gratuity Act(1972) - Question 7
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What is the rate at which gratuity is calculated for an employee with completed years of service?
Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 7
For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned. This calculation formula ensures that employees are compensated fairly for their service duration.
Test: Payment of Gratuity Act(1972) - Question 8
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In case of death or disablement due to accident or disease, when is the completion of continuous service of five years not necessary for gratuity?
Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 8
The completion of continuous service of five years is not necessary for gratuity in case of death or disablement due to accident or disease. This exemption is also applicable to employees employed in seasonal establishments, where the completion of continuous service may not be feasible due to the nature of their employment.
Test: Payment of Gratuity Act(1972) - Question 9
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Under what circumstances can an employee's gratuity be partially or wholly forfeited?
Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 9
An employee's gratuity can be wholly or partially forfeited if their services are terminated for any act of riotous or disorderly conduct, any act of violence on their part, or any act involving moral turpitude. This provision ensures that employees maintain a certain level of conduct and behavior during their employment tenure.
Test: Payment of Gratuity Act(1972) - Question 10
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What should an employee do if there is a dispute regarding the amount of gratuity payable to them?
Detailed Solution for Test: Payment of Gratuity Act(1972) - Question 10
In case of a dispute regarding the amount of gratuity payable to an employee, the employee should approach the controlling authority as specified in the Payment of Gratuity Act. The controlling authority is responsible for resolving such disputes through inquiries, hearings, and determinations. This process ensures a fair resolution between the employer and the employee.
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