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A company has following Gratuity (G) and Provident Fund (PF) rules :

(1) An employee must have completed one year's service to be eligible for either G or PF.

(2) An employee resigning or retiring or retrenched after ten years' service gets both G and PF,

(3) An employee retrenched or retiring after 5 years but before 10 years' service gets both G and 

PF; but that resigning during this period gets either G or PF.

(4) An employee retrenched or retiring before 5 years' service gets PF but not G; but that resigning 

during this period gets neither G nor PF.

However,

(5) in case an employee dies after 2 years' service, his family gets both G and PF.

(6) in case an employee was on leave without pay, such period is deducted from his total years of 

service and then the above rules are applied.

(7) in the case of a lady employee, if she has completed 2 years' service, two years are added to her 

actual service before applying the above rules, as a special consideration.

          Apply the above rules to the cases described in each of the following

questions and decide whether the employee is eligible for G and J or PF.

Mr. Basu served in the company for seven years and resigned after a prolonged illness of 3 years for 

which he was on leave without pay.


Options:
A .  if only G can be given;
B .  if only PF can be given;
C .  if either G or PF can be given;
D .  if both G and PF can be given and
E .  if neither G nor PF can be given.
Answer: Option E

Conditions (6) and (4) are to be applied.



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