Question

Mr. Khanna, a manager in a public limited company, is turning sixty years of age and is about to retire from the organisation after a long and dedicated service.

In this context answer the following:

1. Name any two Acts pertaining to Mr. Khanna's retirement.
2. Discuss the reasons why these two Acts need to be effected in organisations.

Answer 1

1. Two acts pertaining to Mr. Khanna's retirement are:
   
   1. The Employees' Provident Fund and Miscellaneous Provisions Act, 1952.
   2. Payment of Gratuity Act, 1972.
2. The Payment of Gratuity Act, 1972, provides for the payment of gratuity to a retiring employee. The Employees' Provident Fund and Miscellaneous Provisions Act provides for payments accumulated in the retiring employee's provident fund account. These acts need to be effected by an employer to discharge his statutory liability to the retiring employee.