Payment of Gratuity Act 1972

 

MCQs on Payment of Gratuity Act 1972

1) When did The Payment of Gratuity Act 1972, come into force?

A) 01 April 1955
B) 01 March 1955
C) 01 May 1955
D) 16 September 1972.

Answer –D) 16 September 1972.

2) Which section of The Payment of Gratuity Act 1972 deals with the Mode of payment of gratuity ?

A. Section 12 of the Payment of Gratuity Act 1972
B. Section 9 of the Payment of Gratuity Act 1972
C. Section 14 of the Payment of Gratuity Act 1972
D. Section 20 of the Payment of Gratuity Act 1972

Answer B. Section 9 of the Payment of Gratuity Act 1972

3. Which section of the Payment of Gratuity Act 1972 deals with Maintenance of records of cases by the controlling authority._?

A. Section 16 of the Payment of Gratuity Act 1972
B. Section 14 of the Payment of Gratuity Act 1972
C. Section 13 of the Payment of Gratuity Act 1972
D. Section 18 of the Payment of Gratuity Act 1972

Answer – A. Section 16 of the Payment of Gratuity Act 1972

4. Section 17 of the Payment of Gratuity Act 1972 deals with_______?

A. Direction for payment of gratuity
B. Direction for payment of gratuity
C.Mode of payment of gratuity
D. Administration of oath

Ans- B. Direction for payment of gratuity

5.Procedure for dealing with application for direction, is provided in section____ of the Payment of Gratuity Act 1972

A. Section 24 of the Payment of Gratuity Act 1972
B. Section 11 of the Payment of Gratuity Act 1972
C. Section 21 of the Payment of Gratuity Act 1972
D. Section 23 of the Payment of Gratuity Act 1972

Ans- B. Section 11 of the Payment of Gratuity Act 1972

6. According to Section 2 (b) of the Payment of Gratuity Act 1972, completed year of service” means continuous service for_______year

A) 2
B) 4
C) 1
D) 4

Answer –C) 1

7. The employer shall arrange to pay the amount of gratuity within ______days from the date it becomes payable to the person to whom the gratuity is payable.

A) 30
B) 15
C) 45
D) 60

Answer –A) 30

 

8. Which section of the Payment of Gratuity Act 1972 deals with Place and time of hearing?

A. Section 17 of the Payment of Gratuity Act 1972
B. Section 14 of the Payment of Gratuity Act 1972
C. Section 12of the Payment of Gratuity Act 1972
D. Section 19 of the Payment of Gratuity Act 1972
Answer – C. Section 12 of the Payment of Gratuity Act 1972

9. Which section of the Payment of Gratuity Act 1972 deals with Application to controlling authority for direction?

A. Section 17 of the Payment of Gratuity Act 1972
B. Section 14 of the Payment of Gratuity Act 1972
C. Section 10 of the Payment of Gratuity Act 1972
D. Section 19 of the Payment of Gratuity Act 1972

Answer – C. Section 10 of the Payment of Gratuity Act 1972

10. What is the maximum gratuity payable under the Act?

A) 20 lakh
B) 15 lakh
C) 45 lakh
D) 60 lakh

Answer –A) 20 lakh

Payment of Gratuity Act 1972

(a) Recovery of Gratuity 

(b) Penalties 

Recovery of Gratuity: Section 8 provides that if the amount of gratuity payable under this Act is not paid by the employer within the prescribed time, the claimant shall make an application to the Controlling Authority. The Controlling Authority is authorized to issue a certificate to the Collector to recover the amount. Recovery of Gratuity. Section 8 provides that if the amount of gratuity payable under this Act is not paid by the employer within the prescribed time, the claimant shall make an application to the Controlling Authority. The Controlling Authority is authorized to issue a certificate to the Collector to recover the amount.

The Collector shall recover the amount together with compound interest thereon at such as the Central Government may specify, from the date of expiry of the prescribed time.The amount of interest payable under :this section shall not exceed the amount of gratuity payable under this Act., The amount of gratuity under this section shall be recovered as arrears of land revenue and paid to. the person entitled thereto.The Controlling Authority, before issuing a certificate to the Collector, shall give the employer a reasonable opportunity of showing cause against the issue of such certificate.

Penalties : The Payment of Gratuity Act, 1972 imposes penalties on employers for various offences. These are stated below.

Making a false statement or false representation to avoid any payment under the Act. Imprisonment for a term which up-to 6 months or fine up-to Rs. 10,000 or both. [Sec. 9(1)]

Contravention or non-compliance of any provisions of the Act or Rules or Order made the render. Imprisonment up-to one year (minimum 3 months) or fine upto Rs. 20,000 (minimum Rs. 10,000) or both. [Sec. 9(2)]

Non-payment of gratuity under the Act. Imprisonment upto two years (minimum 6 months) or fine upto Rs. 20,000 (minimum Rs. 10,000) or both.

Failure to make payment by way of premium for compulsory insurance under Section 4A (1) or by way of contribution to an approved Gratuity Fund. Fine upto Rs. 10,000 and Rs.1,000 for each day during which the offence continues.