An employee, who has no family, nominates two friends to receive specified shares of gratuity. Which of…
Under Section 54 of the Code on Social Security, 2020 (formerly s.6 of the Payment of Gratuity Act, 1972), an employee who has no family may nominate any person or persons,…
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An employee, who has no family, nominates two friends to receive specified shares of gratuity. Which of the following is correct under Section 54 of the Code on Social Security, 2020?
Answer and explanation
Correct answer B
Under Section 54 of the Code on Social Security, 2020 (formerly s.6 of the Payment of Gratuity Act, 1972), an employee who has no family may nominate any person or persons, and may distribute the gratuity amongst more than one nominee. Two friends with specified shares are therefore validly nominated, with no need for approval or heirship.
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