CMA Intermediate · Business Laws and Ethics · Payment of Gratuity Act, 1972
Under the Code on Social Security, 2020, gratuity is ordinarily payable to an employee on termination of employment only after he has rendered continuous service of not less than how many years?
The general rule is five years of continuous service. Section 53(1) of the Code on Social Security, 2020 makes gratuity payable on superannuation, retirement, resignation and similar events only after not less than five years of continuous service. Three years applies only to working journalists.
- AThree years
- BFive yearsCorrect
- CSeven years
- DTen years
Explanation
Section 53(1) of the Code provides that gratuity is payable on termination of employment after continuous service of not less than five years. The three-year period applies only to working journalists, so it is not the general rule.
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