An employee has tendered resignation after serving an organisation for ten years Will that employee ...........

Industrial Relation and labour law Labour Laws -II

An employee has tendered resignation after serving an organisation for ten years. Will that employee be entitled for gratuity under the payment of gratuity act 1972?

yes he will be entitled

he will not be entitled

there is no provision under this act

none of the above

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Explanation:

The Payment of Gratuity Act, 1972 is an act that provides a scheme for the payment of gratuity to employees working in railways, ports, factories, oilfields, plantations, mines, shops or other establishments and for matters connected therewith or incidental thereto.Under Section 4, payment of gratuity is mandatory. Gratuity shall be payable to an employee on termination of employment after he has rendered continuous service for not less than 5 years in a single organisation. The termination can be due to: Superannuation, Retirement or resignation, and Death or disablement due to accident or disease. As per Section 4(1), the completion of continuous service of 5 years is not required where termination of employment is due to death or disablement. In such case mandatory gratuity is payable.