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Question

In which of the following situations will gratuity be payable to Mr. 'X' under the Payment of Gratuity Act, 1972 ? 

1. Mr. 'X' resigns from the industry after rendering continuous service for six years 

2. Mr. 'X' dies due to an accident in the industry after rendering continuous service for two years 

3. Mr. 'X' retires from the industry after rendering continuous service for five years 

Select the answer using the codes given below :

The correct answer is
1, 2 and 3

Gratuity is payable after five years of continuous service on resignation or retirement. The five-year condition is waived when service ends due to death or disablement. Therefore, gratuity is payable in all three situations: resignation after six years, death after two years, and retirement after five years.

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