In which of the following situations will gratuity be payable to Mr. 'X' under the Payment of Gratuity Act, 1972?
1. Mr. 'X' resigns from the industry after rendering continuous service for six years
2. Mr. 'X' dies due to an accident in the industry after rendering continuous service for two years
3. Mr. 'X' retires from the industry after rendering continuous service for five years
Select the answer using the codes given below:

Correct option is B

The correct answer is: (b) 1, 2 and 3

Explanation

According to Section 4(1) of the Act, gratuity is payable to an employee on the termination of their employment after they have rendered continuous service for not less than five years. However, there are specific rules for different scenarios:

1. Resignation after 6 years (Statement 1): Since Mr. 'X' has completed the mandatory 5-year threshold, he is eligible for gratuity upon his resignation.
2. Death after 2 years (Statement 2): Under the first proviso to Section 4(1), the completion of continuous service of five years is not necessary where the termination of employment is due to death or disablement. Therefore, even with only 2 years of service, Mr. 'X' (or his nominee/heir) is entitled to gratuity.
3. Retirement after 5 years (Statement 3): Retirement (superannuation) after completing exactly 5 years meets the minimum service requirement, making him eligible.

Since all three situations qualify for payment under the Act, Option B is correct.