Which one of the statement about Gratuity is Not Correct?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e., A person is eligible to receive gratuity only if he has completed a minimum of seven years of service with an organisation
- A gratuity (also called a tip) is a sum of money customarily given by a client or customer to certain service sector workers for the service they have performed, in addition to the basic price of the service.
- The gratuity amount depends upon the tenure of service and the last drawn salary.
- A person is eligible to receive gratuity only if he has completed a minimum of five years of service with an organisation.
- However, it can be paid before the completion of five years at the death of an employee or if he has become disabled due to an accident or disease.