Download The Payment Of Gratuity Act, 1972 PDF

 

1. The Payment of Gratuity Act, 1972 deals with:

a. Regulation of minimum wages payable to employees

b. A scheme for the payment of gratuity to employees engaged in specified establishments and for matters connected therewith or incidental thereto

c. Payment of bonus to industrial employees

d. Settlement of industrial disputes between employers and employees

 

2. The Payment of Gratuity Act, 1972 is:

a. Act No. 29 of 1972

b. Act No. 37 of 1972

c. Act No. 39 of 1972

d. Act No. 49 of 1972

 

3. The date appearing in the Payment of Gratuity Act, 1972 is:

a. 15th August, 1972

b. 21st August, 1972

c. 26th January, 1972

d. 2nd October, 1972

 

4. A company employing persons in factories, mines and ports claims that the Payment of Gratuity Act, 1972 does not contemplate gratuity for employees engaged in railway companies. Which of the following is correct?

a. The claim is correct because railway companies are excluded

b. The claim is correct unless notified by the Central Government

c. The claim is incorrect because railway companies are expressly mentioned in the Act

d. The claim is incorrect only if the railway company is government-owned

 

5. Which of the following is the most accurate statement regarding the object of the Payment of Gratuity Act, 1972?

a. It is confined only to providing for payment of gratuity

b. It provides for payment of gratuity and excludes matters ancillary thereto

c. It provides for a scheme for payment of gratuity and for matters connected therewith or incidental thereto

d. It is enacted exclusively for employees of factories and mines

 

6. The enacting formula of the Payment of Gratuity Act, 1972 states that it was enacted by:

a. The Central Government in the Twenty-third Year of the Republic of India

b. Parliament in the Twenty-third Year of the Republic of India

c. The President in the Twenty-third Year of the Republic of India

d. Parliament in the Twenty-fourth Year of the Republic of India

 

7. Section 1 of the Payment of Gratuity Act, 1972 deals with:

a. Definitions

b. Short title, extent, application and commencement

c. Payment of gratuity

d. Nomination

 

8. Under Section 1, this Act may be called:

a. The Gratuity Act, 1972

b. The Payment of Gratuity Act

c. The Payment of Gratuity Act, 1972

d. The Gratuity Payment Act, 1972

 

9. Which of the following correctly states the extent of the Payment of Gratuity Act, 1972?

a. It extends to the whole of India without exception.

b. It extends only to such States as the Central Government may notify.

c. It extends to the whole of India, provided that in so far as it relates to plantations or ports, it shall not extend to the State of Jammu and Kashmir.

d. It extends only to the States other than Jammu and Kashmir.

 

10. A plantation situated in the State of Jammu and Kashmir claims that the Payment of Gratuity Act does not extend to it. Which of the following is correct under Section 1?

a. The claim is incorrect because the Act extends uniformly throughout India.

b. The claim is correct because, in so far as the Act relates to plantations, it does not extend to the State of Jammu and Kashmir.

c. The claim is correct only if the plantation employs less than ten persons.

d. The claim is correct only after a notification by the Central Government.

 

11. Under Section 1(3)(a), the Act applies to:

a. Every factory, mine, oilfield, plantation, port and railway company

b. Every establishment employing ten or more persons

c. Every establishment notified by the State Government

d. Every commercial establishment irrespective of its nature

 

12. Under Section 1(3)(b), the Act applies to every shop or establishment within the meaning of the relevant State law where:

a. Ten or more persons are employed on the date of inspection

b. Ten or more persons are employed, or were employed, on any day of the preceding twelve months

c. Ten or more persons are employed continuously for twelve months

d. Twenty or more persons are employed

 

13. Under Section 1(3)(c), the Central Government may, by notification, specify:

a. Any establishment irrespective of the number of employees

b. Such other establishments or class of establishments in which ten or more employees are employed, or were employed, on any day of the preceding twelve months

c. Only factories employing ten or more employees

d. Only shops employing ten or more employees

 

14. A society employed twelve employees on one day during the preceding twelve months. It is neither a factory nor a shop under the State law. Under Section 1(3)(c), it can be brought within the Act:

a. Automatically

b. Only if the State Government issues a notification

c. By a notification of the Central Government specifying such establishment or class of establishments

d. Only if it presently employs ten or more employees

 

15. A shop to which the Act became applicable subsequently reduces its workforce to eight employees. Under Section 1(3-A), which of the following is correct?

a. The Act immediately ceases to apply.

b. The Act continues to govern the shop notwithstanding that the number of persons employed falls below ten.

c. The Act applies only if the reduction lasts for less than one year.

d. The Act continues only after approval of the appropriate Government.

 

16. Under Section 1(4), the Payment of Gratuity Act, 1972 comes into force:

a. On the date of enactment

b. On the date of publication in the Gazette

c. On such date as the Central Government may, by notification, appoint

d. On such date as Parliament may prescribe by resolution

 

17. Which of the following statements is correct under Section 1?

a. Once applicable, the Act ceases to apply if the number of employees falls below ten.

b. Every shop is covered irrespective of the number of employees.

c. The Central Government may appoint the date of commencement by notification, and a shop or establishment once covered continues to be governed by the Act even if the number of persons employed later falls below ten.

d. The Act extends to plantations and ports in the State of Jammu and Kashmir without exception.

 

18. Section 2 of the Payment of Gratuity Act, 1972 deals with:

a. Payment of gratuity

b. Definitions

c. Controlling Authority

d. Nomination

 

19. Under Section 2(a), the "appropriate Government" in relation to an establishment having branches in more than one State is:

a. The State Government where the head office is situated

b. The Central Government

c. The State Government where the largest branch is situated

d. The Government notified by the employer

 

20. A factory belongs to and is under the control of the Central Government. Under Section 2(a), the appropriate Government is:

a. The State Government where the factory is situated

b. The Central Government

c. Both the Central and State Governments jointly

d. Such authority as may be notified by the employer

 

21. Under Section 2(a), the appropriate Government in relation to a major port, mine, oilfield or railway company is:

a. The State Government

b. The Central Government

c. The local authority concerned

d. The Controlling Authority

 

22. In all cases other than those specifically mentioned in Section 2(a)(i), the appropriate Government is:

a. The Central Government

b. The District Magistrate

c. The State Government

d. The Controlling Authority

 

23. Under Section 2(b), "completed year of service" means:

a. Service of not less than 240 days

b. Continuous service for one year

c. Service from the date of appointment till confirmation

d. Twelve calendar months irrespective of continuity

 

24. Under Section 2(c), "continuous service" means:

a. Uninterrupted service under the Industrial Disputes Act, 1947

b. Continuous service as defined in Section 2-A

c. Service of 240 days in a year

d. Service without any leave whatsoever

 

25. Under Section 2(d), the "Controlling Authority" means:

a. An authority appointed by the Central Government under Section 4

b. An authority appointed by the appropriate Government under Section 3

c. The Labor Commissioner of the State

d. The appropriate Government itself

 

26. An apprentice engaged in a factory claims to be an "employee" under Section 2(e). Which of the following is correct?

a. The claim is correct because every person working in a factory is an employee.

b. The claim is correct only if wages are paid.

c. The claim is incorrect because an apprentice is expressly excluded from the definition of "employee".

d. The claim is correct if the apprenticeship exceeds one year.

 

27. Which of the following is an essential requirement for a person to qualify as an "employee" under Section 2(e)?

a. The terms of employment must be express and in writing.

b. The person must be employed for wages.

c. The person must perform only manual work.

d. The person must be employed only in a factory.

 

28. Under Section 2(e), employment may be:

a. Only under express terms

b. Only under implied terms

c. Under express or implied terms

d. Only under a written contract

 

29. Which of the following kinds of work is covered under the definition of "employee" in Section 2(e)?

a. Only manual work

b. Only supervisory work

c. Any kind of work, manual or otherwise

d. Only skilled work

 

30. A person is employed for wages in connection with the work of a shop to which the Act applies but holds a post under the State Government and is governed by separate rules providing for payment of gratuity. Under Section 2(e), such person:

a. Is an employee under the Act

b. Is excluded from the definition of "employee"

c. Is covered only if the State Government so notifies

d. Is covered only after completing five years of service

 

31. Under Section 2(f)(i), where an establishment belongs to or is under the control of the Central Government or a State Government and no person or authority has been appointed for supervision and control of employees, the employer is:

a. The Controlling Authority

b. The head of the Ministry or the Department concerned

c. The Labor Commissioner

d. The Chief Executive Officer

 

32. Under Section 2(f)(ii), where a local authority has not appointed any person for the supervision and control of employees, the employer is:

a. The District Magistrate

b. The Chairperson of the local authority

c. The Chief Executive Officer of the local authority

d. The Controlling Authority

 

33. The affairs of a plantation are entrusted to a manager although ownership remains with another person. Under Section 2(f)(iii), who is treated as the employer?

a. Only the owner

b. Only the appropriate Government

c. The person to whom the affairs are entrusted, irrespective of the designation

d. The Controlling Authority

 

34. Under Section 2(g), the expression "Factory" has the meaning assigned in:

a. Section 2(k) of the Factories Act, 1948

b. Section 2(m) of the Factories Act, 1948

c. Section 3 of the Factories Act, 1948

d. Section 2(m) of the Industrial Disputes Act, 1947

 

35. Which of the following statements is correct under Section 2?

a. An apprentice is included within the definition of "employee".

b. Continuous service means continuous service as defined in Section 2-A, and a completed year of service means continuous service for one year.

c. The appropriate Government for every establishment under the Act is the State Government.

d. Where the affairs of an establishment are entrusted to a manager, only the owner is the employer.

 

36. Under Section 2(h) of the Payment of Gratuity Act, 1972, "Family" in relation to an employee refers to:

a. Persons entitled to receive gratuity

b. Persons deemed to constitute the family of an employee for the purposes of the Act

c. Legal heirs of an employee

d. Dependants nominated under the Act

 

37. In the case of a male employee, which of the following forms part of his family under Section 2(h)?

a. Himself, his wife, his children (whether married or unmarried), his dependent parents, the dependent parents of his wife, and the widow and children of his predeceased son, if any

b. Himself, his wife and only his unmarried children

c. Himself, his wife and only his dependent parents

d. Himself, his wife, children and brothers

 

38. Under Section 2(h), in the case of a female employee, which of the following is included in her family?

a. Herself, her husband, her children (whether married or unmarried), her dependent parents, the dependent parents of her husband, and the widow and children of her predeceased son, if any

b. Herself, her husband and only her unmarried children

c. Herself, her husband and only her dependent parents

d. Herself, her husband, children and sisters

 

39. A male employee lawfully adopts a child under his personal law. Under the Explanation to Section 2(h), the adopted child:

a. Is excluded from the employee's family

b. Is included in the employee's family only if nominated

c. Shall be deemed to be included in the employee's family

d. Is included only after attaining majority

 

40. A child of an employee is lawfully adopted by another person under the applicable personal law. Under the Explanation to Section 2(h), such child:

a. Continues to remain part of the employee's family

b. Is deemed to be excluded from the employee's family

c. Is excluded only after attaining majority

d. Is excluded only if the employer approves

 

41. Under Section 2(i), the expression "major port" has the meaning assigned in:

a. Clause (4) of Section 3 of the Indian Ports Act, 1908

b. Clause (8) of Section 3 of the Indian Ports Act, 1908

c. Section 2 of the Major Port Trusts Act

d. Section 3 of the Ports Act, 1963

 

42. Under Section 2(j), the expression "mine" has the meaning assigned in:

a. Clause (j) of sub-section (1) of Section 2 of the Mines Act, 1952

b. Clause (m) of Section 2 of the Factories Act, 1948

c. Section 3 of the Mines Act, 1952

d. Clause (e) of Section 3 of the Oilfields (Regulation and Development) Act, 1948

 

43. Under Section 2(k), "notification" means:

a. A notification issued by the appropriate Government

b. A notification published in the Official Gazette

c. A circular issued by the Central Government

d. Any order communicated to the employer

 

44. Under Section 2(l), the expression "oilfield" has the meaning assigned in:

a. Clause (e) of Section 3 of the Oilfields (Regulation and Development) Act, 1948

b. Clause (f) of Section 2 of the Plantations Labor Act, 1951

c. Section 2 of the Mines Act, 1952

d. Section 3 of the Petroleum Act

 

45. Under Section 2(m), the expression "plantation" has the meaning assigned in:

a. Clause (f) of Section 2 of the Plantations Labor Act, 1951

b. Clause (8) of Section 3 of the Indian Ports Act, 1908

c. Section 2 of the Factories Act, 1948

d. Section 3 of the Oilfields (Regulation and Development) Act, 1948

 

46. Under Section 2(n), the expression "port" has the meaning assigned in:

a. Clause (8) of Section 3 of the Indian Ports Act, 1908

b. Clause (4) of Section 3 of the Indian Ports Act, 1908

c. Section 2 of the Major Port Trusts Act

d. Section 3 of the Merchant Shipping Act

 

47. Under Section 2(o), the expression "prescribed" means:

a. Prescribed by the appropriate Government

b. Prescribed by notification in the Official Gazette

c. Prescribed by rules made under the Act

d. Prescribed by the Controlling Authority

 

48. Under Section 2(p), the expression "railway company" has the meaning assigned in:

a. Clause (5) of Section 3 of the Indian Railways Act, 1890

b. Section 2 of the Railways Act, 1989

c. Clause (4) of Section 3 of the Indian Ports Act, 1908

d. Section 2 of the Railways Act, 1989

 

49. An employee's service comes to an end for a reason other than superannuation. Under Section 2(q), such termination amounts to:

a. Resignation

b. Retirement

c. Retrenchment

d. Discharge

 

50. Under Section 2(r), "superannuation" means:

a. Completion of twenty years of service

b. Attainment by the employee of the age fixed in the contract or conditions of service on attaining which the employee shall vacate the employment

c. Voluntary retirement after completing qualifying service

d. Retirement on medical grounds

 

51. Which of the following is included in "wages" under Section 2(s)?

a. Bonus

b. Commission

c. Dearness allowance

d. House rent allowance

 

52. Which of the following is excluded from the definition of "wages" under Section 2(s)?

a. Emoluments earned while on leave in accordance with the terms and conditions of employment

b. Dearness allowance

c. Emoluments paid or payable in cash while on duty

d. Overtime wages

 

53. Which of the following statements is correct under Section 2?

a. Lawfully adopted children are always excluded from an employee's family.

b. "Notification" means any communication issued by the appropriate Government.

c. "Superannuation" means attainment of the age fixed in the contract or conditions of service on attaining which the employee shall vacate the employment, and "wages" include dearness allowance but exclude bonus, commission, house rent allowance, overtime wages and any other allowance.

d. "Prescribed" means prescribed by executive instructions of the Central Government.

 

54. Section 2A of the Payment of Gratuity Act, 1972 deals with:

a. Continuous service

b. Controlling Authority

c. Payment of gratuity

d. Recovery of gratuity

 

55. An employee has rendered uninterrupted service for a period. During that period, he availed sanctioned leave and remained absent due to sickness. Under Section 2A(1), such service:

a. Ceases to be continuous service

b. Is continuous service, since interruption on account of sickness or leave does not affect continuity

c. Is continuous service only if approved by the Controlling Authority

d. Is continuous service only where the leave does not exceed thirty days

 

56. An employee remained absent from duty without leave. No order treating such absence as a break in service was passed in accordance with the applicable standing orders, rules or regulations. Under Section 2A(1), such absence:

a. Automatically breaks continuous service

b. Does not interrupt continuous service

c. Results in discontinuity unless condoned by the employer

d. Results in discontinuity only after one month

 

57. Which of the following interruptions is expressly recognized under Section 2A(1) as not affecting continuous service?

a. Resignation

b. Suspension

c. Lock-out

d. Termination

 

58. Under Section 2A(1), continuous service includes uninterrupted or qualifying interrupted service rendered:

a. Only after the commencement of the Act

b. Only before the commencement of the Act

c. Either before or after the commencement of the Act

d. Only after an establishment becomes covered under the Act

 

59. An employee, who is not employed in a seasonal establishment, is unable to satisfy the requirement of continuous service under Section 2A(1). For being deemed to be in continuous service for one year under Section 2A(2)(a), an employee employed below the ground in a mine must have actually worked during the preceding twelve calendar months for at least:

a. 120 days

b. 190 days

c. 240 days

d. 95 days

 

60. Under Section 2A(2)(a), an employee employed in an establishment working for less than six days in a week shall be deemed to be in continuous service for one year if he has actually worked during the preceding twelve calendar months for not less than:

a. 120 days

b. 190 days

c. 240 days

d. 95 days

 

61. An employee, other than one employed below the ground in a mine or in an establishment working for less than six days in a week, claims deemed continuous service for one year. Under Section 2A(2)(a), he must have actually worked during the preceding twelve calendar months for at least:

a. 190 days

b. 200 days

c. 240 days

d. 365 days

 

62. Under Section 2A(2)(b), an employee employed below the ground in a mine shall be deemed to be in continuous service for six months if he has actually worked during the preceding six calendar months for not less than:

a. 90 days

b. 95 days

c. 120 days

d. 190 days

 

63. An employee working in an establishment operating six days a week seeks the benefit of deemed continuous service for six months under Section 2A(2)(b). He must have actually worked during the preceding six calendar months for at least:

a. 95 days

b. 100 days

c. 120 days

d. 190 days

 

64. Which of the following statements is correct under Section 2A?

a. Every absence from duty without leave automatically breaks continuous service.

b. Deemed continuous service under Section 2A(2) is available even to employees employed in seasonal establishments.

c. Continuous service includes uninterrupted service and specified interrupted service, and where an employee (other than one employed in a seasonal establishment) does not satisfy Section 2A(1), he may still be deemed to be in continuous service by fulfilling the prescribed actual working-day requirement under Section 2A(2).

d. Continuous service includes only service rendered after the commencement of the Act.

 

65. Under the Explanation to Section 2A(2) of the Payment of Gratuity Act, 1972, the number of days on which an employee has actually worked includes:

a. Only the days on which the employee physically attended work

b. Certain statutorily recognized non-working days specified in the Explanation

c. Only days worked after confirmation of service

d. Only days for which overtime wages were paid

 

66. An employee was laid-off in accordance with the standing orders applicable to the establishment. For computing the number of days actually worked under Section 2A(2), such days:

a. Shall not be counted

b. Shall be counted only if wages were paid in full

c. Shall be included

d. Shall be included only with the approval of the Controlling Authority

 

67. An employee remained on leave with full wages earned in the previous year. Under the Explanation to Section 2A(2), such period:

a. Shall not be treated as days actually worked

b. Shall be included in the number of days actually worked

c. Shall be counted only up to thirty days

d. Shall be counted only if certified by the employer

 

68. An employee remained absent due to temporary disablement caused by an accident arising out of and in the course of employment. Under the Explanation to Section 2A(2), such period:

a. Shall be excluded from the days actually worked

b. Shall be included in the days actually worked

c. Shall be included only if compensation is paid

d. Shall be included only if the disablement does not exceed six months

 

69. A female employee remained on maternity leave for ten weeks. For the purposes of Section 2A(2), such leave:

a. Shall not be counted as days actually worked

b. Shall be counted as days actually worked

c. Shall be counted only if specifically approved by the employer

d. Shall be counted only if she resumes duty immediately thereafter

 

70. A female employee remained on maternity leave for sixteen weeks. Under the Explanation to Section 2A(2), the maternity leave that may be included in the number of days actually worked cannot exceed:

a. Six weeks

b. Eight weeks

c. Twelve weeks

d. Sixteen weeks

 

71. An employee is employed in a seasonal establishment and does not satisfy the requirement of continuous service under Section 2A(1). Under Section 2A(3), he shall be deemed to be in continuous service for the relevant period if he has actually worked for not less than:

a. Fifty per cent of the days on which the establishment was in operation

b. Sixty per cent of the days on which the establishment was in operation

c. Seventy-five per cent of the days on which the establishment was in operation

d. Ninety per cent of the days on which the establishment was in operation

 

72. Under Section 2A(3), the benchmark of seventy-five per cent is calculated with reference to:

a. The total calendar days in the relevant period

b. The total working days of the employee

c. The number of days on which the establishment was in operation during the relevant period

d. The number of days notified by the appropriate Government

 

73. Which of the following statements is correct under Section 2A?

a. Maternity leave is always excluded while computing the days actually worked.

b. Days of lay-off permitted under the applicable law are excluded from the computation of days actually worked.

c. In the case of a seasonal establishment, an employee not in continuous service under Section 2A(1) shall be deemed to be in continuous service if he has actually worked for not less than seventy-five per cent of the number of days on which the establishment was in operation during the relevant period, and the Explanation includes specified non-working days in the computation of days actually worked.

d. Temporary disablement due to an employment accident is excluded from the computation of days actually worked.

 

74. Section 3 of the Payment of Gratuity Act, 1972 deals with:

a. Nomination

b. Controlling Authority

c. Payment of gratuity

d. Recovery of gratuity

 

75. Under Section 3, the Controlling Authority is appointed by:

a. The Central Government in every case

b. The State Government in every case

c. The Appropriate Government by notification

d. The Labour Commissioner by order

 

76. Under Section 3, the Controlling Authority appointed under the Act is primarily responsible for:

a. Adjudication of industrial disputes

b. Administration of the Act

c. Recovery of gratuity as arrears of land revenue

d. Framing rules under the Act

 

77. The Appropriate Government appoints separate Controlling Authorities for different territorial jurisdictions. Which of the following is correct under Section 3?

a. Such appointment is impermissible as only one Controlling Authority can be appointed for the entire State.

b. Different Controlling Authorities may be appointed for different areas.

c. Different Controlling Authorities may be appointed only with the approval of the Central Government.

d. Different Controlling Authorities may be appointed only for factories and mines.

 

78. Which of the following statements is correct under Section 3?

a. The Appropriate Government may, by notification, appoint any officer to be the Controlling Authority responsible for the administration of the Act, and different Controlling Authorities may be appointed for different areas.

b. Only the Central Government may appoint the Controlling Authority.

c. The Controlling Authority is appointed by order and not by notification.

d. Only one Controlling Authority can be appointed under the Act.

 

79. Section 4 of the Payment of Gratuity Act, 1972 deals with:

a. Controlling Authority

b. Payment of Gratuity

c. Recovery of Gratuity

d. Nomination

 

80. Under Section 4(1), gratuity becomes payable to an employee on termination of employment after rendering continuous service of not less than:

a. One year

b. Three years

c. Five years

d. Ten years

 

81. An employee who has completed five years of continuous service retires from service. Under Section 4(1), gratuity:

a. Is payable only if the employer approves

b. Is payable

c. Is payable only if the employee has attained superannuation

d. Is not payable on retirement

 

82. Which of the following events entitles an employee to gratuity under Section 4(1), subject to the statutory conditions?

a. Superannuation, retirement or resignation, and death or disablement due to accident or disease

b. Transfer to another establishment

c. Suspension pending inquiry

d. Promotion

 

83. An employee dies after rendering only three years of continuous service. Under Section 4(1), which of the following is correct?

a. Gratuity is not payable because five years' continuous service is mandatory in every case.

b. Gratuity is payable since the requirement of five years' continuous service does not apply where termination is due to death.

c. Gratuity is payable only if the employer voluntarily agrees.

d. Gratuity is payable only if the employee had made a nomination.

 

84. An employee becomes permanently incapable of performing the work he was capable of performing before an accident, after completing only four years of continuous service. Under Section 4(1), gratuity:

a. Is not payable because five years' service is compulsory.

b. Is payable since five years' continuous service is not necessary where termination is due to disablement.

c. Is payable only if the disablement is certified by the Controlling Authority.

d. Is payable only if the employee attains superannuation.

 

85. An employee dies without making a nomination. Under the second proviso to Section 4(1), the gratuity payable shall be paid to:

a. The employer

b. The Controlling Authority

c. His heirs

d. The appropriate Government

 

86. A deceased employee leaves behind a minor nominee. Under the second proviso to Section 4(1), the minor's share of gratuity shall:

a. Be paid directly to the minor.

b. Lapse to the employer until the minor attains majority.

c. Be deposited with the Controlling Authority for investment in the prescribed bank or financial institution until the minor attains majority.

d. Be transferred to the appropriate Government.

 

87. For the purposes of Section 4, "disablement" means:

a. Any physical injury suffered by an employee.

b. Such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

c. Permanent disability certified by a Medical Board.

d. Any disease requiring hospitalization.

 

88. Under Section 4(2), gratuity for every completed year of service or part thereof in excess of six months is payable at the rate of:

a. Ten days' wages based on the last drawn wages

b. Fifteen days' wages based on the last drawn wages

c. Twenty days' wages based on the average wages

d. One month's wages based on the last drawn wages

 

89. A piece-rated employee's gratuity is to be calculated under Section 4(2). His daily wages shall be computed:

a. On the basis of the last month's wages including overtime

b. On the average of the total wages received during the three months immediately preceding termination, excluding overtime wages

c. On the average wages of the preceding six months including overtime

d. On the basis of minimum wages applicable to the establishment

 

90. An employee is employed in a seasonal establishment and is not so employed throughout the year. Under the second proviso to Section 4(2), gratuity is payable at the rate of:

a. Fifteen days' wages for every completed year of service

b. Ten days' wages for each season

c. Seven days' wages for each season

d. Fifteen days' wages for each season

 

91. Under the Explanation to Section 4(2), in the case of a monthly rated employee, fifteen days' wages shall be calculated by:

a. Dividing the monthly wages by 30 and multiplying by 15

b. Dividing the monthly wages by 31 and multiplying by 15

c. Dividing the monthly rate of wages last drawn by 26 and multiplying the quotient by 15

d. Dividing the monthly wages by 25 and multiplying by 15

 

92. Under Section 4(3), the amount of gratuity payable to an employee shall not exceed:

a. ₹5 lakh

b. ₹8 lakh

c. ₹10 lakh

d. ₹20 lakh

 

93. Which of the following statements is correct under Section 4?

a. Five years' continuous service is mandatory even where termination is due to death or disablement.

b. Gratuity for a piece-rated employee is computed by including overtime wages.

c. In the case of a monthly rated employee, fifteen days' wages are calculated by dividing the monthly rate of wages last drawn by twenty-six and multiplying the quotient by fifteen, and the gratuity payable shall not exceed ₹10 lakh.

d. In every seasonal establishment, gratuity is payable at the rate of fifteen days' wages for each completed year of service.

 

94. Under Section 4(4) of the Payment of Gratuity Act, 1972, where an employee is employed after his disablement on reduced wages, gratuity is computed:

a. Entirely on the basis of the reduced wages

b. Entirely on the basis of the wages last drawn before disablement

c. By taking the wages before disablement for the period preceding disablement and the reduced wages for the period subsequent to disablement

d. On the average of the wages before and after disablement

 

95. An employee, after suffering disablement, continues in service on reduced wages. Which of the following correctly reflects Section 4(4)?

a. The reduction in wages has no relevance for computation of gratuity.

b. The entire gratuity is calculated on the wages last drawn after disablement.

c. The wages before disablement are considered for the period preceding disablement, while the reduced wages are considered for the subsequent period.

d. The employee becomes disentitled to gratuity.

 

96. Under Section 4(5), the provisions relating to gratuity under the Act:

a. Override every award, agreement or contract providing better gratuity.

b. Affect the right of an employee to receive better terms of gratuity under an award or agreement.

c. Do not affect the right of an employee to receive better terms of gratuity under any award, agreement or contract with the employer.

d. Permit better terms of gratuity only under an award and not under a contract.

 

97. An employee's services are terminated for willful negligence causing damage to the employer's property. Under Section 4(6)(a), the gratuity:

a. Must always be wholly forfeited.

b. Shall be forfeited only to the extent of the damage or loss caused.

c. Cannot be forfeited.

d. Shall be forfeited only with the approval of the Controlling Authority.

 

98. Under Section 4(6)(b), the gratuity payable to an employee may be wholly or partially forfeited if the services have been terminated for:

a. Unsatisfactory performance alone

b. Riotous or disorderly conduct or any other act of violence on the part of the employee

c. Absence without leave for more than thirty days

d. Resignation without notice

 

99. An employee's services are terminated for an act constituting an offence involving moral turpitude. Under Section 4(6)(b)(ii), gratuity may be wholly or partially forfeited only if:

a. The offence is punishable with imprisonment of two years or more.

b. The offence is committed against the employer.

c. The offence is committed in the course of the employee's employment.

d. The employee has completed less than five years of service.

 

100. Which of the following statements is correct under Section 4?

a. An employee employed on reduced wages after disablement is entitled to gratuity calculated only on the reduced wages.

b. The Act extinguishes every contractual right to receive better gratuity than that provided under the Act.

c. Where services are terminated for willful omission or negligence causing damage or loss to the employer's property, gratuity shall be forfeited only to the extent of such damage or loss, while gratuity may be wholly or partially forfeited in the cases specified under Section 4(6)(b).

d. Gratuity may be wholly forfeited in every case where the employee's services are terminated for negligence, irrespective of any damage or loss.

 

101. Section 4A of the Payment of Gratuity Act, 1972 deals with:

a. Nomination

b. Compulsory Insurance

c. Recovery of Gratuity

d. Inspectors

 

102. Under Section 4A(1), every employer is required to obtain insurance for liability towards payment of gratuity:

a. Immediately on the commencement of the Act

b. From such date as may be notified by the appropriate Government

c. Only after employing one hundred employees

d. Only upon the direction of the Controlling Authority

 

103. Which of the following employers is exempt from the mandatory requirement of obtaining insurance under Section 4A(1)?

a. Every employer employing less than ten persons

b. Every employer employing less than five hundred persons

c. An employer or establishment belonging to, or under the control of, the Central Government or a State Government

d. Every seasonal establishment

 

104. Under Section 4A(1), the insurance for gratuity liability shall be obtained:

a. Only from the Life Insurance Corporation of India

b. From the Life Insurance Corporation of India or any other prescribed insurer

c. From any insurer chosen by the employer

d. Only from a Government-owned insurance company

 

105. Under the proviso to Section 4A(1), the appropriate Government may:

a. Notify only one uniform date for all employers

b. Appoint different dates for different establishments, classes of establishments or different areas

c. Exempt every employer from compulsory insurance

d. Postpone the operation of the Act indefinitely

 

106. An employer had already established an approved gratuity fund for his employees before Section 4A came into force and wishes to continue the arrangement. Under Section 4A(2), the appropriate Government may:

a. Compel the employer to obtain insurance in every case

b. Exempt the employer from the provisions of Section 4A(1), subject to the prescribed conditions

c. Exempt the employer only if he employs five hundred or more persons

d. Exempt the employer only with the approval of the Central Government

 

107. Under Section 4A(2), an employer employing five hundred or more persons may be exempted from Section 4A(1) if he:

a. Gives an undertaking to pay gratuity

b. Establishes an approved gratuity fund in the prescribed manner, subject to the prescribed conditions

c. Maintains a reserve account for gratuity

d. Obtains approval from the employees

 

108. Under Section 4A(3), an employer shall get his establishment registered with the Controlling Authority:

a. Within such time as may be prescribed and in the prescribed manner

b. Within thirty days of commencement of business

c. Only if directed by the appropriate Government

d. Only after gratuity becomes payable to an employee

 

109. An employer applies for registration of his establishment without obtaining insurance under Section 4A(1) and without establishing an approved gratuity fund under Section 4A(2). Under Section 4A(3), the registration:

a. Must be granted

b. May be granted subject to furnishing an undertaking

c. Cannot be granted

d. May be granted by the appropriate Government

 

110. Under Section 4A(4), the appropriate Government may, by notification, make rules:

a. Only regarding compulsory insurance

b. Only regarding exemption from insurance

c. To give effect to the provisions of Section 4A, including the composition of the Board of Trustees of an approved gratuity fund and recovery of gratuity by the Controlling Authority from the insurer or the Board of Trustees, as the case may be

d. Only regarding registration of establishments

 

111. Which of the following statements is correct under Section 4A?

a. Every employer, including establishments belonging to or under the control of the Central Government or a State Government, must obtain compulsory insurance.

b. An employer cannot be exempted from compulsory insurance under any circumstances.

c. No employer shall be registered under Section 4A unless he has either obtained the prescribed insurance or established an approved gratuity fund referred to in Section 4A(2).

d. The appropriate Government has no rule-making power under Section 4A.

 

112. An employer fails to pay the premium towards the insurance obtained under Section 4A(1). Under Section 4A(5), he is liable to:

a. Pay only the unpaid premium to the insurer

b. Pay the amount of gratuity due under the Act, including interest, if any, for delayed payment, forthwith to the Controlling Authority

c. Pay compensation only to the affected employee

d. Face automatic cancellation of registration

 

113. An employer has established an approved gratuity fund under Section 4A(2) but fails to make the required contribution to it. Under Section 4A(5), the employer shall:

a. Pay the contribution with interest to the Board of Trustees only

b. Pay the gratuity due under the Act, including interest, if any, for delayed payment, forthwith to the Controlling Authority

c. Be exempt from further liability if the fund has sufficient balance

d. Incur only a monetary penalty without any liability to pay gratuity

 

114. An employer contravenes the provisions of Section 4A(5). Under Section 4A(6), the maximum fine that may be imposed for such contravention is:

a. ₹5,000

b. ₹10,000

c. ₹20,000

d. ₹25,000

 

115. If the contravention of Section 4A(5) is a continuing offence, the offender is further liable to a fine which may extend to:

a. ₹500 for each day during which the offence continues

b. ₹1,000 for each day during which the offence continues

c. ₹2,000 for each day during which the offence continues

d. ₹10,000 for each day during which the offence continues

 

116. Under the Explanation to Section 4A, the expression "approved gratuity fund" has the same meaning as assigned in:

a. Section 2(v) of the Payment of Gratuity Act, 1972

b. Clause (v) of Section 2 of the Income-tax Act, 1961

c. Section 10 of the Income-tax Act, 1961

d. Clause (iv) of Section 2 of the Income-tax Act, 1961

 

117. Which of the following statements is correct under Section 4A?

a. Failure to pay the insurance premium or contribution to an approved gratuity fund merely attracts a fine and does not create any immediate liability to pay gratuity.

b. On failure to pay the insurance premium or contribution to an approved gratuity fund, the employer must forthwith pay the gratuity due under the Act, including interest, if any, for delayed payment, to the Controlling Authority, and contravention of this requirement is punishable with fine as provided in Section 4A(6).

c. A continuing contravention under Section 4A(6) attracts no additional daily fine.

d. The expression "approved gratuity fund" is defined exclusively in the Payment of Gratuity Act, 1972.

 

118. Section 5 of the Payment of Gratuity Act, 1972 deals with:

a. Compulsory Insurance

b. Power to exempt

c. Nomination

d. Recovery of gratuity

 

119. Under Section 5(1), the power to exempt an establishment from the operation of the Act is exercised by:

a. The Controlling Authority by order

b. The Central Government in every case

c. The Appropriate Government by notification

d. The Labour Commissioner by notification

 

120. An establishment seeks exemption from the operation of the Payment of Gratuity Act. Under Section 5(1), such exemption may be granted only if, in the opinion of the Appropriate Government:

a. The establishment has been in existence for at least five years.

b. The employees are in receipt of gratuity or pensionary benefits not less favorable than the benefits conferred under the Act.

c. The employer employs less than ten employees.

d. The employer has established an approved gratuity fund.

 

121. An exemption under Section 5(1) may be granted subject to:

a. Such conditions as may be specified in the notification

b. Such conditions as may be imposed by the Controlling Authority

c. No conditions, as exemption is absolute

d. Prior approval of the employees

 

122. Under Section 5(2), the Appropriate Government may exempt:

a. Only an entire establishment

b. Only a factory

c. Any employee or class of employees employed in an establishment to which the Act applies

d. Only employees of Government establishments

 

123. An employer requests exemption only for a particular category of employees working in his establishment. Under Section 5(2), such exemption may be granted if:

a. The employer so requests in writing

b. The employees have completed five years' service

c. In the opinion of the Appropriate Government, such employees receive gratuity or pensionary benefits not less favorable than those under the Act

d. The establishment has an approved gratuity fund

 

124. Which of the following is the correct basis for granting exemption under both Sections 5(1) and 5(2)?

a. Financial hardship of the employer

b. Consent of the employees

c. Receipt of gratuity or pensionary benefits not less favorable than those conferred under the Act

d. Recommendation of the Controlling Authority

 

125. Under Section 5(3), a notification issued under Section 5(1) or Section 5(2):

a. Can never operate retrospectively

b. May be issued retrospectively, but not earlier than the date of commencement of the Act

c. May be issued retrospectively from any date chosen by the Appropriate Government

d. Can operate retrospectively only with Parliamentary approval

 

126. The Appropriate Government proposes to issue a retrospective exemption notification under Section 5(3), which would adversely affect the accrued rights of certain employees. Under Section 5(3):

a. Such retrospective notification is valid in all cases.

b. Such notification is valid if published in the Official Gazette.

c. Such notification cannot be issued so as to prejudicially affect the interest of any person.

d. Such notification is valid only with the consent of the employer.

 

127. Which of the following statements is correct under Section 5?

a. The Appropriate Government may exempt only establishments and not employees.

b. Exemption may be granted only where employees receive benefits identical to those under the Act.

c. A notification under Section 5 may be retrospective from a date not earlier than the commencement of the Act, but it cannot be issued so as to prejudicially affect the interest of any person.

d. Every exemption under Section 5 must be unconditional.

 

128. Section 6 of the Payment of Gratuity Act, 1972 deals with:

a. Determination of gratuity

b. Nomination

c. Recovery of gratuity

d. Inspectors

 

129. Under Section 6(1), every employee who has completed one year of service shall make a nomination:

a. Immediately on joining service

b. Within such time, in such form and in such manner as may be prescribed

c. Only when demanded by the employer

d. At the time of retirement

 

130. Under Section 6(2), an employee may, in his nomination:

a. Nominate only one person

b. Distribute the amount of gratuity payable under the Act amongst more than one nominee

c. Nominate only members of his family in every case

d. Nominate only his legal heirs

 

131. An employee has a family at the time of making a nomination but nominates his friend as the sole nominee. Under Section 6(3), such nomination is:

a. Valid if the employer accepts it

b. Valid if the friend is financially dependent on the employee

c. Void

d. Valid until challenged by the family

 

132. At the time of making a nomination, an employee has no family and nominates his friend. Subsequently, he acquires a family. Under Section 6(4), the earlier nomination:

a. Continues to remain valid

b. Becomes invalid only after one year

c. Forthwith becomes invalid, and the employee must make a fresh nomination in favour of one or more members of his family within the prescribed time

d. Can be retained with the employer's approval

 

133. Under Section 6(5), an employee may modify his nomination:

a. Only once during service

b. Only with the prior permission of the Controlling Authority

c. At any time, subject to Sections 6(3) and 6(4), by giving the employer a written notice in the prescribed form and manner

d. Only after completing five years of service

 

134. A nominee dies before the employee. Under Section 6(6), the interest of the deceased nominee:

a. Passes to the nominee's legal heirs

b. Lapses to the employer

c. Reverts to the employee, who shall make a fresh nomination in the prescribed form in respect of such interest

d. Automatically devolves upon the remaining nominees

 

135. Under Section 6(7), every nomination, fresh nomination or alteration of nomination shall:

a. Be filed before the Controlling Authority

b. Be sent by the employee to the appropriate Government

c. Be sent by the employee to his employer, who shall keep it in safe custody

d. Be registered before a Magistrate

 

136. An employee, who has no family, nominates two friends to receive specified shares of gratuity. Which of the following is correct under Section 6?

a. The nomination is invalid because only family members can be nominated.

b. The nomination is valid, and the gratuity may be distributed amongst more than one nominee.

c. The nomination is valid only if approved by the Controlling Authority.

d. The nomination is valid only if both nominees are legal heirs.

 

137. Which of the following statements is correct under Section 6?

a. An employee having a family may validly nominate any person of his choice.

b. A nomination cannot be modified after it is once made.

c. If an employee subsequently acquires a family after making a nomination when he had none, the earlier nomination forthwith becomes invalid and a fresh nomination in favor of one or more members of his family must be made within the prescribed time.

d. Every nomination is required to be kept in the custody of the Controlling Authority.

 

138. Section 7 of the Payment of Gratuity Act, 1972 deals with:

a. Recovery of gratuity

b. Determination of the amount of gratuity

c. Nomination

d. Compulsory insurance

 

139. Under Section 7(1), an application for payment of gratuity may be made by:

a. Only the employee

b. Only the legal heirs of the employee

c. A person eligible for payment of gratuity or a person authorized in writing to act on his behalf

d. Only the Controlling Authority

 

140. Under Section 7(1), the application for payment of gratuity shall be:

a. Oral and made before the Controlling Authority

b. In writing, within such time and in such form as may be prescribed

c. Made only after the employer issues a notice

d. Submitted within thirty days of retirement

 

141. An employee eligible for gratuity does not submit an application under Section 7(1). Under Section 7(2), the employer:

a. Is not required to take any further action.

b. Shall determine the amount of gratuity only after receiving an application.

c. Shall, as soon as gratuity becomes payable, determine the amount of gratuity whether an application has been made or not.

d. May refuse payment until directed by the Controlling Authority.

 

142. Under Section 7(2), after determining the amount of gratuity, the employer shall give notice in writing:

a. Only to the employee

b. Only to the Controlling Authority

c. To the person to whom gratuity is payable and also to the Controlling Authority, specifying the amount of gratuity so determined

d. To the appropriate Government alone

 

143. Under Section 7(3), the employer shall arrange to pay the amount of gratuity:

a. Within fifteen days from the date of retirement

b. Within thirty days from the date it becomes payable

c. Within sixty days from the date of determination

d. Within ninety days from the date of application

 

144. An employer fails to pay gratuity within the period specified in Section 7(3). Under Section 7(3A), the employer is liable to pay:

a. Compound interest at the rate fixed by the employer

b. Penal damages only

c. Simple interest from the date gratuity became payable till the date of payment at such rate, not exceeding the rate notified by the Central Government for repayment of long-term deposits, as specified by notification

d. Interest only if directed by a court

 

145. The rate of simple interest payable under Section 7(3A) shall:

a. Be fixed by the employer

b. Not exceed the rate notified by the Central Government from time to time for repayment of long-term deposits

c. Be determined by the Controlling Authority in each case

d. Always be 12% per annum

 

146. An employer delays payment of gratuity because the employee failed to complete necessary formalities. The employer has obtained written permission from the Controlling Authority for the delayed payment on this ground. Under the proviso to Section 7(3A):

a. Interest is payable in every case of delayed payment.

b. Interest is not payable if the delay is due to the employee's fault and the employer has obtained written permission from the Controlling Authority.

c. Interest is not payable merely because the employer alleges fault on the part of the employee.

d. Interest is waived only if approved by the appropriate Government.

 

147. Which of the following statements is correct under Section 7?

a. The employer is required to determine the amount of gratuity only after receiving an application from the employee.

b. Gratuity is required to be paid within sixty days from the date it becomes payable.

c. If gratuity is not paid within the period specified under Section 7(3), the employer is liable to pay simple interest as provided under Section 7(3A), unless the delay is due to the fault of the employee and written permission for the delayed payment has been obtained from the Controlling Authority.

d. Notice of determination of gratuity is required to be given only to the Controlling Authority.

 

148. Under Section 7(4)(a) of the Payment of Gratuity Act, 1972, if there is a dispute regarding gratuity, the employer shall:

a. Withhold the entire gratuity until the dispute is decided

b. Deposit with the Controlling Authority such amount as he admits to be payable as gratuity

c. Deposit the entire claimed amount with the Appellate Authority

d. Pay the admitted amount directly to the employee

 

149. Which of the following disputes is expressly covered under Section 7(4)(a)?

a. Dispute regarding the validity of appointment

b. Dispute regarding the amount of gratuity payable, admissibility of a claim, or the person entitled to receive gratuity

c. Dispute regarding promotion of an employee

d. Dispute regarding fixation of wages

 

150. Under Section 7(4)(b), an application for deciding a dispute may be made by:

a. Only the employer

b. Only the employee

c. The employer, the employee, or any other person raising the dispute

d. Only the Controlling Authority

 

151. Before determining a dispute under Section 7(4)(c), the Controlling Authority shall:

a. Decide the matter on the basis of documents alone

b. Conduct a due inquiry and give the parties a reasonable opportunity of being heard

c. Obtain prior approval of the Appropriate Government

d. Refer the matter to a Civil Court

 

152. Upon finding that gratuity is payable after inquiry under Section 7(4)(c), the Controlling Authority shall:

a. Direct the employer to pay the entire claimed amount irrespective of any deposit

b. Direct the employer to pay the amount found payable or such amount as reduced by the amount already deposited by the employer

c. Recover the amount only through the District Collector

d. Forward its recommendation to the Appropriate Government

 

153. Under Section 7(4)(d), the amount deposited by the employer, including any excess amount deposited, shall be paid by the Controlling Authority to:

a. The employer

b. The Appropriate Government

c. The person entitled thereto

d. The appellate authority

 

154. An employee files an application for gratuity and the Controlling Authority is satisfied that there is no dispute. Under Section 7(4)(e), the amount deposited shall be paid:

a. To the employer

b. To the employee

c. To the Appropriate Government

d. To the Labor Commissioner

 

155. An employee dies and the Controlling Authority is satisfied that there is no dispute regarding entitlement. Under Section 7(4)(e), the deposited amount shall be paid to:

a. The nominee or, as the case may be, the guardian of such nominee or the heir of the employee

b. Only the legal heir

c. Only the guardian

d. The employer

 

156. For conducting an inquiry under Section 7(5), the Controlling Authority has the same powers as a Civil Court under the Code of Civil Procedure, 1908 in respect of:

a. Enforcing attendance, discovery and production of documents, receiving evidence on affidavits, and issuing commissions for examination of witnesses

b. Granting temporary injunctions

c. Passing decrees for specific performance

d. Reviewing its own judgments

 

157. An inquiry under Section 7 is deemed to be:

a. An administrative proceeding only

b. A judicial proceeding within the meaning of Sections 229 and 267, and for the purposes of Section 233 of the Bharatiya Nyaya Sanhita, 2023

c. An arbitration proceeding

d. A departmental inquiry

 

158. Any person aggrieved by an order under Section 7(4) may prefer an appeal within:

a. Thirty days from the date of the order

b. Forty-five days from the date of communication

c. Sixty days from the date of receipt of the order

d. Ninety days from the date of the order

 

159. Under the first proviso to Section 7(7), if sufficient cause is shown, the appellate authority may extend the period for filing an appeal by:

a. Thirty days

b. Forty-five days

c. Sixty days

d. Ninety days

 

160. An employer prefers an appeal under Section 7(7). Which of the following is a mandatory condition for admission of the appeal?

a. Deposit of 50% of the gratuity amount

b. Production of a certificate of the Controlling Authority that the required gratuity amount has been deposited, or deposit of such amount with the appellate authority

c. Furnishing a bank guarantee for the gratuity amount

d. Prior permission of the Appropriate Government

 

161. Under Section 7(8), after giving the parties a reasonable opportunity of being heard, the Appropriate Government or the appellate authority may:

a. Only confirm the decision of the Controlling Authority

b. Only modify the decision of the Controlling Authority

c. Confirm, modify or reverse the decision of the Controlling Authority

d. Remand the matter only to a Civil Court

 

162. Which of the following statements is correct under Section 7?

a. The Controlling Authority may decide a dispute without hearing the parties.

b. An employer's appeal is admissible even without depositing the statutory gratuity amount.

c. Where a dispute exists, the employer must deposit the admitted gratuity with the Controlling Authority, and the Controlling Authority, after due inquiry and giving the parties a reasonable opportunity of being heard, may determine the dispute; an aggrieved person may appeal within sixty days, extendable by a further sixty days for sufficient cause.

d. The appellate authority can only confirm or reverse, but not modify, the decision of the Controlling Authority.

 

163. Section 7A of the Payment of Gratuity Act, 1972 deals with:

a. Recovery of gratuity

b. Inspectors

c. Penalties

d. Cognizance of offences

 

164. Under Section 7A(1), Inspectors for the purposes of the Payment of Gratuity Act, 1972 are appointed by:

a. The Controlling Authority

b. The Appropriate Government by notification

c. The Central Government in every case by order

d. The Labor Commissioner by notification

 

165. Under Section 7A(2), the Appropriate Government may, by general or special order:

a. Remove an Inspector from service

b. Define the area to which the authority of an Inspector shall extend and, where two or more Inspectors are appointed for the same area, provide for the distribution or allocation of work among them

c. Confer judicial powers upon an Inspector

d. Delegate its rule-making power to an Inspector

 

166. Two Inspectors are appointed for the same area under the Payment of Gratuity Act. Under Section 7A(2), the Appropriate Government may:

a. Require both Inspectors to perform all functions jointly

b. Allocate or distribute the work to be performed by them under the Act by a general or special order

c. Leave the distribution of work to the Controlling Authority

d. Permit the Inspectors to decide the distribution of work mutually without any order

 

167. Which of the following statements is correct under Section 7A?

a. Inspectors are appointed by the Controlling Authority and are deemed to be judicial officers.

b. Every Inspector is deemed to be a public servant within the meaning of Section 2(28) of the BNS, and the Appropriate Government may define the area of his authority and allocate work where more than one Inspector is appointed for the same area.

c. Inspectors are appointed by the Central Government in every case and exercise jurisdiction throughout India.

d. An Inspector is deemed to be a public servant only after notification by the Controlling Authority.

 

168. Section 7B of the Payment of Gratuity Act, 1972 deals with:

a. Powers of Inspectors

b. Appointment of Inspectors

c. Recovery of gratuity

d. Penalties

 

169. An Inspector seeks to exercise powers under Section 7B. The primary purpose of exercising such powers is:

a. To adjudicate disputes regarding gratuity

b. To ascertain whether the provisions of the Act or the conditions of any exemption granted thereunder have been complied with

c. To recover gratuity as arrears of land revenue

d. To prosecute every employer covered by the Act

 

170. Under Section 7B(1)(a), an Inspector may:

a. Require an employer to furnish such information as the Inspector considers necessary

b. Direct the employer to dismiss an employee

c. Impose a monetary penalty on the employer

d. Order payment of gratuity

 

171. Under Section 7B(1)(b), an Inspector may enter and inspect the premises of an establishment:

a. At any time without restriction

b. Only after obtaining a search warrant

c. At all reasonable hours, with such assistants as specified in the provision

d. Only during working hours with the employer's consent

 

172. Which of the following persons may accompany an Inspector while entering and inspecting premises under Section 7B(1)(b)?

a. Any private individual chosen by the Inspector

b. Only police officers

c. Such assistants, if any, being persons in the service of the Government, local authority or any public authority, as the Inspector thinks fit

d. Representatives of the employees' union only

 

173. An Inspector enters a factory covered by the Act. Under Section 7B(1)(b), which of the following may he require to be produced for inspection?

a. Only registers required under the Act

b. Registers, records, notices or other documents required to be kept or exhibited under the Act or the rules made thereunder, or otherwise kept or exhibited in relation to employment or payment of gratuity

c. Only wage registers

d. Only documents specifically mentioned in the notice of inspection

 

174. Under Section 7B(1)(c), an Inspector may examine:

a. Only the employer

b. Only employees whose names appear in the attendance register

c. The employer or any person found in the premises whom the Inspector has reasonable cause to believe is an employee employed therein

d. Any person found near the establishment

 

175. An Inspector has reason to believe that an employer has committed an offence under the Act. Under Section 7B(1)(d), the Inspector may:

a. Immediately prosecute the employer without investigation

b. Search and seize such register, record, notice or other document as he considers relevant to the offence

c. Seal the entire establishment

d. Arrest the employer

 

176. Under Section 7B(1)(e), an Inspector may:

a. Exercise only the powers expressly mentioned in clauses (a) to (d)

b. Exercise such other powers as may be prescribed

c. Exercise any power available to a Civil Court

d. Exercise any power delegated by the employer

 

177. A person required by an Inspector to produce records or furnish information refuses to do so. Under Section 7B(2), such person is deemed to be legally bound to comply within the meaning of:

a. Sections 172 and 173 of the BNS

b. Sections 210 and 211 of the BNS

c. Sections 193 and 228 of the BNS

d. Sections 420 and 425 of the BNS

 

178. Under Section 7B(3), the provisions of the Bharatiya Nagarik Suraksha Sanhita relating to search and seizure apply to searches and seizures under this section as they apply to:

a. A search under Section 91 of the BNSS.

b. A search under Section 165 of the BNSS

c. A search or seizure made under the authority of a warrant issued under Section 97 of the BNSS.

d. Every search conducted by a police officer without warrant

 

179. Which of the following statements is correct under Section 7B?

a. An Inspector may enter any establishment at any time without limitation and seize documents even without reason to believe that an offence has been committed.

b. A person required by an Inspector to produce documents is under no legal obligation to comply.

c. Subject to the rules made by the Appropriate Government, an Inspector may exercise the powers specified in Section 7B to ascertain compliance with the Act or the conditions of any exemption, and searches or seizures under the section are governed, so far as may be, by the provisions of the BNSS applicable to searches under a warrant issued under Section 97 thereof.

d. An Inspector may exercise only those powers specifically conferred by the Controlling Authority.

 

180. Section 8 of the Payment of Gratuity Act, 1972 deals with:

a. Recovery of Gratuity

b. Determination of gratuity

c. Nomination

d. Inspectors

 

181. An employer fails to pay gratuity within the prescribed time. Under Section 8, the Controlling Authority may issue a certificate to the Collector:

a. Suo motu in every case

b. Only on an application made by the aggrieved person

c. Only on the recommendation of the Appropriate Government

d. Only after an order of the Civil Court

 

182. Upon receipt of a certificate under Section 8, the Collector shall:

a. Recover only the amount of gratuity as a civil debt

b. Recover the gratuity together with compound interest at such rate as the Central Government may, by notification, specify, as arrears of land revenue and pay the same to the person entitled thereto

c. Recover only the interest payable on gratuity

d. Forward the certificate to the Appropriate Government for recovery

 

183. Before issuing a certificate under Section 8 for recovery of gratuity, the Controlling Authority shall:

a. Obtain prior approval of the Appropriate Government

b. Give the employer a reasonable opportunity of showing cause against the issue of such certificate

c. Give notice only to the employee

d. Refer the dispute to the Collector

 

184. Which of the following statements is correct under Section 8?

a. The Collector recovers gratuity as arrears of land revenue without any interest.

b. The Controlling Authority may issue a recovery certificate without hearing the employer.

c. The Collector shall recover the gratuity together with compound interest at the notified rate as arrears of land revenue, but the interest payable shall in no case exceed the amount of gratuity payable under the Act.

d. Recovery under Section 8 can be initiated only by the Appropriate Government.

 

185. Section 9 of the Payment of Gratuity Act, 1972 deals with:

a. Recovery of Gratuity

b. Penalties

c. Appointment of Inspectors

d. Determination of Gratuity

 

186. A person knowingly makes a false statement to avoid payment of gratuity under the Act. Under Section 9(1), such person is punishable with:

a. Imprisonment up to one year only

b. Fine up to twenty thousand rupees only

c. Imprisonment which may extend to six months, or fine which may extend to ten thousand rupees, or with both

d. Imprisonment for a minimum of six months

 

187. Under Section 9(1), a false statement or false representation becomes punishable when it is knowingly made for the purpose of:

a. Securing employment

b. Avoiding any payment under the Act or enabling another person to avoid such payment

c. Obtaining exemption under the Act

d. Challenging the order of the Controlling Authority

 

188. An employer contravenes a provision of the Payment of Gratuity Act or defaults in complying with any rule or order made thereunder. Under Section 9(2), the employer is punishable with:

a. Imprisonment up to six months only

b. Fine up to ten thousand rupees only

c. Imprisonment of not less than three months but which may extend to one year, or fine of not less than ten thousand rupees but which may extend to twenty thousand rupees, or with both

d. Civil penalty only

 

189. The offence committed by an employer relates specifically to non-payment of gratuity payable under the Act. Under the proviso to Section 9(2), the punishment shall ordinarily be:

a. Imprisonment up to one year only

b. Imprisonment of not less than six months but which may extend to two years

c. Fine up to twenty thousand rupees only

d. Simple imprisonment up to three months only

 

190. Under the proviso to Section 9(2), the Court may impose a lesser term of imprisonment or only a fine for non-payment of gratuity:

a. Whenever the employer requests it

b. Only with the consent of the employee

c. If, for reasons to be recorded in writing, the Court is of the opinion that a lesser term of imprisonment or the imposition of a fine would meet the ends of justice

d. Only with the approval of the Appropriate Government

 

191. Which of the following statements is correct under Section 9?

a. A false statement under Section 9(1) is punishable only with a fine.

b. Every contravention of the Act by an employer is punishable with imprisonment of not less than six months.

c. Knowingly making a false statement to avoid payment under the Act or to enable another person to avoid such payment is punishable under Section 9(1), while an employer committing default under the Act is punishable under Section 9(2), with a higher minimum punishment prescribed for offences relating to non-payment of gratuity.

d. A Court has no discretion to impose a lesser sentence in cases of non-payment of gratuity.

 

192. Section 10 of the Payment of Gratuity Act, 1972 deals with:

a. Exemption of employer from liability in certain cases

b. Cognizance of offences

c. Recovery of gratuity

d. Inspectors

 

193. An employer charged with an offence under the Act seeks to have another person treated as the actual offender. Under Section 10, the employer must:

a. Obtain prior permission from the Appropriate Government

b. Make a complaint and give the complainant not less than three clear days' notice in writing of his intention

c. Obtain the consent of the Controlling Authority

d. File an appeal before the Labor Court

 

194. Under Section 10, an employer shall be discharged from liability if he proves to the satisfaction of the Court that:

a. He delegated all responsibilities to another person

b. He used due diligence to enforce the execution of the Act and the other person committed the offence without his knowledge, consent or connivance

c. The offence was committed during the absence of the employer

d. The employee suffered no loss

 

195. If the employer successfully proves the requirements under Section 10, the actual offender:

a. Shall only be fined

b. Shall be convicted of the offence and be liable to the like punishment as if he were the employer

c. Shall be discharged with a warning

d. Shall be liable only for civil damages

 

196. Under the first proviso to Section 10, while proving his defence, the employer:

a. Cannot be examined as a witness

b. May be examined on oath, and his evidence and that of his witnesses shall be subject to cross-examination by the person charged as the actual offender and by the prosecutor

c. May only file documentary evidence

d. Is exempt from cross-examination

 

197. The person alleged by the employer to be the actual offender cannot be brought before the Court on the date fixed for hearing. Under the second proviso to Section 10, the Court shall:

a. Immediately acquit the employer

b. Adjourn the hearing from time to time for a period not exceeding three months

c. Dismiss the complaint

d. Refer the matter to the Controlling Authority

 

198. If, even after the maximum period of adjournment under the second proviso to Section 10, the person charged as the actual offender cannot be brought before the Court, the Court shall:

a. Close the proceedings

b. Proceed to hear the charge against the employer and, if the offence is proved, convict the employer

c. Automatically discharge the employer

d. Transfer the case to the Appropriate Government

 

199. Which of the following statements is correct under Section 10?

a. An employer is automatically exempt from liability by merely naming another person as the offender.

b. An employer can claim exemption only if he proves due diligence in enforcing the Act and that the offence was committed by the other person without his knowledge, consent or connivance; otherwise, if the alleged actual offender cannot be produced within the prescribed period, the Court shall proceed against the employer.

c. The Court may adjourn the hearing indefinitely until the actual offender is produced.

d. The employer cannot be examined on oath while seeking exemption.

 

200. Section 11 of the Payment of Gratuity Act, 1972 deals with:

a. Cognizance of Offences

b. Penalties

c. Recovery of Gratuity

d. Exemption of Employer from Liability

 

201. Under Section 11(1), no Court shall take cognizance of an offence punishable under the Payment of Gratuity Act, 1972 except:

a. On a police report

b. On a private complaint by the employee

c. On a complaint made by or under the authority of the Appropriate Government

d. On a complaint by the employer

 

202. The gratuity payable under the Act has neither been paid nor recovered within six months from the expiry of the prescribed time. Under the proviso to Section 11(1), the Appropriate Government shall:

a. Direct the employee to file a private complaint

b. Authorize the Controlling Authority to make a complaint against the employer

c. Forward the matter to the Collector for prosecution

d. Institute proceedings before the Labor Court

 

203. After being authorized by the Appropriate Government under the proviso to Section 11(1), the Controlling Authority shall make a complaint to the Magistrate having jurisdiction:

a. Within seven days from the date of authorization

b. Within fifteen days from the date of authorization

c. Within thirty days from the date of authorization

d. Within sixty days from the date of authorization

 

204. Under Section 11(2), no Court inferior to which of the following shall try an offence punishable under the Payment of Gratuity Act, 1972?

a. Chief Judicial Magistrate

b. Judicial Magistrate of the Second Class

c. Metropolitan Magistrate or Judicial Magistrate of the First Class

d. Sessions Court

 

205. Which of the following statements is correct under Section 11?

a. Any employee may directly file a complaint before any Magistrate for an offence under the Act.

b. A Judicial Magistrate of the Second Class is competent to try offences under the Act.

c. No Court shall take cognizance of an offence under the Act except on a complaint made by or under the authority of the Appropriate Government, and such offence shall not be tried by a Court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class.

d. The Controlling Authority may file a complaint without authorization from the Appropriate Government in every case.

 

206. Section 12 of the Payment of Gratuity Act, 1972 deals with:

a. Protection of action taken in good faith

b. Protection of gratuity

c. Validation of payment of gratuity

d. Power to make rules

 

207. Under Section 12, no suit or other legal proceeding shall lie against:

a. Only the Appropriate Government

b. The Controlling Authority or any other person in respect of anything done or intended to be done in good faith under the Act or any rule or order made thereunder

c. Only the employer

d. Any Inspector acting under the Code of Criminal Procedure

 

208. Section 13 of the Payment of Gratuity Act, 1972 provides that gratuity payable under the Act:

a. May be attached by any Civil Court

b. Shall be liable to attachment only by a Criminal Court

c. Shall not be liable to attachment in execution of any decree or order of any Civil, Revenue or Criminal Court

d. May be attached with the consent of the employee

 

209. Which gratuity is protected from attachment under Section 13?

a. Only gratuity payable under the Payment of Gratuity Act

b. Only gratuity payable to Government employees

c. Gratuity payable under the Act and gratuity payable to employees of establishments exempted under Section 5

d. Only gratuity payable by factories

 

210. Section 13A of the Payment of Gratuity Act, 1972 deals with:

a. Validation of payment of gratuity

b. Determination of gratuity

c. Recovery of gratuity

d. Exemption from liability

 

211. Under Section 13A, notwithstanding any judgment, decree or order of any Court, gratuity for the period commencing on 3 April 1997 and ending on the date the Payment of Gratuity (Amendment) Act, 2009 received the President's assent:

a. Shall not be payable

b. Shall be payable in pursuance of Government of India Notification S.O. 1080 dated 3 April 1997, which is deemed always to have been valid

c. Shall be payable only after approval of the Appropriate Government

d. Shall be determined afresh by the Controlling Authority

 

212. Under the proviso to Section 13A:

a. Every employer is liable to punishment for non-payment during the validation period

b. The validation provision shall not affect any punishment or penalty for non-payment during the specified period

c. Nothing in Section 13A shall extend to affect any person with any punishment or penalty for non-payment of gratuity during the specified period which became due pursuant to the notification

d. Employers are automatically exempt from payment of gratuity

 

213. Section 14 of the Payment of Gratuity Act, 1972 provides that:

a. The Act is subject to every other labor law

b. The provisions of the Act and the rules made thereunder shall have overriding effect over anything inconsistent contained in any other enactment, instrument or contract having effect by virtue of such enactment

c. Contracts always prevail over the Act

d. The Act overrides only Central Acts

 

214. Section 15(1) empowers the Appropriate Government:

a. To amend the Act by notification

b. To make rules by notification for carrying out the provisions of the Act

c. To issue binding judicial directions

d. To delegate legislative power to employers

 

215. Every rule made by the Central Government under the Act shall be laid before each House of Parliament:

a. For fifteen days in one session only

b. For thirty days, which may be comprised in one session or in two or more successive sessions

c. For sixty days in every session

d. Only before the Lok Sabha

 

216. If both Houses of Parliament agree that a rule made under the Act should not be made:

a. The rule remains valid permanently

b. The rule shall thereafter be of no effect, without prejudice to the validity of anything previously done under that rule

c. The rule automatically revives after one year

d. The rule ceases retrospectively from the date of notification

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