Deck 4: Gratuity Act 1972

Question 1

Under the Payment of Gratuity Act, 1972 the maximum gratuity payable is

A)rs. 10 lakhs
B)rs. 8 lakhs
C)rs. 5 lakhs
D)rs. 3.5 lakhs

Answer 1

rs. 10 lakhs

Question 2

What is the qualifying service to claim gratuity?

A)15 years
B)10 years
C)5 years
D)no such prescription

Answer 2

5 years

Question 3

The eligibility condition for obtaining gratuity under the Payment of Gratuity Act, 1972 is

A)completion of 2 years of service
B)completion of 3 years of service
C)completion of 4 years of service
D)completion of 5 years of service

Answer 3

completion of 5 years of service

Question 4

The maximum amount of gratuity has now been enhanced to Rs. 10 lakhs from

A)2.5 lakhs
B)3.5 lakhs
C)5 lakhs
D)7.5 lakhs

Question 5

The employer shall arrange to pay the amount of gratuity within --------- days from the date it becomes payable.

A)30 days
B)15 days
C)60 days
D)75 days

Question 6

Appeal on the decision of controlling authority should be preferred within ------ --- days from the date of the order

A)30 days
B)60 days
C)15 days
D)75 days

Question 7

The formula for calculating gratuity is

A)gratuity = (monthly salary/25) x 15 x no. of years of service
B)gratuity = (monthly salary/30) x 15 x no. of years of service
C)gratuity = (monthly salary/26) x 15 x no. of years of service
D)gratuity = (monthly salary/15) x 15 x no. of years of service

Question 8

Which of the following is wrong statement

A)no gratuity payable under the act shall be liable to attachment in execution of any decree or order of any civil, revenue or criminal court.
B)the payment of gratuity (amendment) act, 1987 has prescribed provisions for compulsory insurance for employer's liability for payment towards the gratuity under the act from the life insurance corporation of india or any other prescribed insurer.
C)once the payment of gratuity act becomes applicable to the establishment, a notice in form 'a' has to be given by the employer to the controlling authority within 30 days. notice in form 'b' is to be given to the controlling authority within 30 days of any change in name, address, employer or nature of business. if an employer proposes to close down the business, he shall submit a notice in form 'c' to the controlling authority at least 60 days before the intended closure.
D)this act is not applicable to public charitable and religious trusts

Question 9

For avoiding any payment knowingly makes any false statement orrepresentation shall be punishable with

A)imprisonment upto 3 months or fine upto rs. 10,000/- or both
B)imprisonment upto 6 months or fine upto rs. 10,000/- or both
C)imprisonment upto 3 months or fine upto rs. 20,000/- or both
D)imprisonment upto 6 months or fine upto rs. 20,000/- or both

Question 10

Failure to comply with any provision of the Act or Rules shall be punishable with

A)imprisonment upto 1 year or with fine extend upto rs. 10,000/- or with both
B)imprisonment upto 1 year or with fine extend upto rs. 20,000/- or with both
C)imprisonment upto 2 year or with fine extend upto rs. 20,000/- or with both
D)imprisonment upto 2 year or with fine extend upto rs. 50,000/- or with both

Question 11

Which section deals with the determination of the amount of gratuity

A)section 10
B)section 8
C)section 7
D)section 9