An employee has been retrenched from an organisation where he has completed ten years of continuous ...........

Industrial Relation and labour law Labour Laws -II

An employee has been retrenched from an organisation where he has completed ten years of continuous service. Will that employee be entitled to receive gratuity under the payment of gratuity act, 1972?

he will be entitled

he will no be entitled

there is no provision in this act for such type of situation

none of the above

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Explanation:

Employees play a major role in growth of any organization. Payment of gratuity by an employer is a mechanism devised to recognize the efforts of employees who remain associated with the organizations for a long period of time and also, serves as an instrument of social security to such employees in the event of termination, resignation, retirement, superannuation, death. 'Gratuity' may be crudely defined as a payment made by an employer to his employees for the services rendered by him over a specific period of time. The term is derived from the word 'gratuitous', which means 'gift' or 'present'. Having being enacted as a statutory social benefit, it ceases to retain the concept of a gift and it has to be seen as a social obligation by an employer towards his employee. Payment of gratuity in India is regulated by the provisions of Payment of Gratuity Act, 1972 ("Act").