Dear Nandi,
First of all -MPs & MLAs are not covered under the Payment of Gratuity Act. That's it. See the Eligibility conditions:
" (3) It shall apply to¬ -
(a) every factory, mine, oilfield, plantation, port and railway company;
(b) every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State, in which ten or more persons are employed, or were employed, on any day of the preceding twelve months;
(c) such other establishments or class of establishments, in which ten or more employees are employed, or were employed, or, any day of the preceding twelve months, as the Central Government may, by notification, specify in this behalf.
(3A) A shop or establishment to which this Act has become applicable shall continue to be governed by this Act notwithstanding that the number of persons employed therein at any time after it has become so applicable falls below ten.] "
In this where is Parliament & Legislature (they work there only ???)
Secondly - There is no "Employer - Employee" relationship (who is the Boss and who are the employee/workermen ??
(d) "controlling authority" means an authority appointed by the appropriate Government under section 3 ;
(e) "employee" means any person (other than an apprentice) employed on wages, [3] [***] in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, [4] [and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity].
Explanation : [5] [***]
(f) "employer" means, in relation to any establishment, factory, mine, oilfield, plantation, port, railway company or shop -
Thirdly - Every MP/MLA, if otherwise eligible they should have "Continuous Service" of 5 yrs.
[
[2] [(c) "continuous service" means continuous service as defined in section 2A;] For the purposes of this Act, -
"(1) an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order [***] treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment), lay off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act."
- Under Indian Constitution NO MP or MLA can have 5 yrs. minimum service, as the House will get expired before 5 yrs. term under normal circumstances.
And so on.
Did U go thro the Gratuity Bare Act before the interview ?? You should have refreshed what you read beforehand, some presence of mind should have been ignited to answer such general questions, otherwise U should have answered simply "MPs & MLAs are not eligible for gratuity under the Gratuity Act. That's all.
Better luck next time pal.
kumar.s.