Psdhingra
Legal Analyst, Hrm
Mail8013
Hr Consultant
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An employee of a company died at the age of 50 after completing 20 years of service. Unfortunately the company do
not have a LIC linked Gratuity Policy. Is the company liable to pay gratuity for 20 years of service or for 28 yrs including
service up to the age of retirement
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Company is liable to pay only for 20 yrs. If u want as a gratitude u may pay up to 28 yrs
Irrespective of whether the company has linked up with LIC for the Gratuity, the company is liable to pay the Gratuity to the nominee of the deceased employee. As per the act, if no nomination has been made, then the gratuity will be payable to the deceased employee's heirs, and where any such nominees or heirs is a minor the shares of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.
The company is liable to pay gratuity for 20 years if the deceased employee had completed 20 years of service with your establishment.
Cheers, A.B.
Company’s liability for payment of gratuity is limited to the years of service rendered by the employee.
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