All India Bar Examination (AIBE) 20 (XX) Previous Year Question Papers with Answers
Practice Mode:
4.
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R).
Assertion (A): An employee can be deemed to be in continuous service for one year only if he has worked for 365 days in the preceding twelve months, without any interruption.
Reason (R): Under the Payment of Gratuity Act, 1972, continuous service may also include periods of interruption due to sickness, accident, leave, lay-off, strike, or lock-out not caused by the employee's fault.
In the context of the above assertion and reason under the Payment of Gratuity Act, 1972, which
one of the following is correct ?
A:
Both (A) and (R) are true, and (R) is the correct explanation of (A)
B:
Both (A) and (R) are true, but (R) is not the correct explanation of (A)
The correct answer is Option D - Assertion (A) is False, but Reason (R) is True.
Under Section 2A of the Payment of Gratuity Act, 1972, continuous service does not require 365 uninterrupted working days. The law clearly permits certain interruptions to be counted as part of continuous service, making Assertion (A) legally incorrect and Reason (R) legally correct.
WHAT IS CONTINUOUS SERVICE UNDER PAYMENT OF GRATUITY ACT, 1972?
Continuous Service is defined under Section 2A of the Payment of Gratuity Act, 1972. It means an employee is considered to be in continuous service even if there are breaks or interruptions in employment, provided those interruptions are due to reasons beyond the employee's control.
WHY ASSERTION (A) IS FALSE
The assertion incorrectly states that 365 uninterrupted days are required for continuous service of one year. This is legally wrong.
The actual requirement under Section 2A of the Payment of Gratuity Act, 1972 is:
TYPE OF ESTABLISHMENT
MINIMUM DAYS REQUIRED
Mines / Below Ground Work
190 Days
Any Other Establishment
240 Days
There is no requirement of 365 continuous uninterrupted days under the Payment of Gratuity Act, 1972.
WHY REASON (R) IS TRUE
Section 2A of the Payment of Gratuity Act, 1972 expressly provides that the following interruptions are included in continuous service:
PERMITTED INTERRUPTION
COUNTED IN CONTINUOUS SERVICE
Sickness
✅ Yes
Accident
✅ Yes
Earned Leave
✅ Yes
Lay-off
✅ Yes
Strike (Not Illegal)
✅ Yes
Lock-out (Not Employee's Fault)
✅ Yes
Cessation of Work (Not Employee's Fault)
✅ Yes
Since Reason (R) correctly states the legal position under Section 2A, Reason (R) is True.
