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    Question

    What is the penalty for an employer who fails to pay

    gratuity to the employee as per the Payment of Gratuity Act, 1972?
    A Imprisonment for up to 1 year Correct Answer Incorrect Answer
    B Fine of up to Rs. 20,000 Correct Answer Incorrect Answer
    C Both imprisonment and fine Correct Answer Incorrect Answer
    D Warning from the labour department Correct Answer Incorrect Answer

    Solution

    10,000 or both. Failure to comply with the provisions of this Act shall be punishable by a minimum of 3 months, which may extend up to 1 year, or a fine of Rs. 10,000, which may extend up to Rs. 20,000.

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