Labour Law Questions and Answers Part-8

1. 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 -------- days’ wages based on the rate of wages last drawn by the employee concerned
a) 25 days
b) 15 days
c) 30 days
d) 7 days

Answer: b

2. In the case of a monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by ----------- and multiplying the quotient by fifteen
a) 30
b) 15
c) 26
d) 25

Answer: c

3.In the case of an employee who is employed in a seasonal establishment and who is not so employed throughout the year, the employer shall pay the gratuity at the rate of --------days’ wages for each season.
a) 14 days
b) 15 days
c) 10 days
d) 7 days

Answer: d

4. 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

Answer: a

5. 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

Answer: b

6. 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

Answer: c

7. 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

Answer: d

8. For avoiding any payment knowingly makes any false statement or representation 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

Answer: a

9. 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 botht
d) imprisonment upto 2 year or with fine extend upto Rs. 50,000/- or with botht

Answer: b

10. Which section deals with the determination of the amount of gratuity
a) Section 10
b) Section 8
c) Section 7
d) Section 9

Answer: c