Question

Which of the following statements about gratuity is correct?

1.
Gratuity is optional for the employer
2.
Gratuity is payable even if the employer earns no profit
3.
Gratuity is paid out of the profits of the establishment
4.
Gratuity is payable only if the employer earns a profit
Answer (Detailed Solution Below)

Option 2 : Gratuity is payable even if the employer earns no profit

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Detailed Solution

सही उत्तर Gratuity is payable even if the employer earns no profit है।

Key Points

Gratuity is a statutory liability of the employer and is payable even if the employer earns no profit.

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More Domain-Specific Questions

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Question:

Which of the following statements about gratuity is correct?

1.
Gratuity is optional for the employer
2.
Gratuity is payable even if the employer earns no profit
3.
Gratuity is paid out of the profits of the establishment
4.
Gratuity is payable only if the employer earns a profit

Correct Answer: Gratuity is payable even if the employer earns no profit

Gratuity is a statutory liability of the employer and is payable even if the employer earns no profit.

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