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Dear Members,
One of our company (contractor) employee worked in PE establishment (principal employer) from last feb2016.
He died by suicide. For that case his nominees/surviving family are eligible for gratuity or not. Please advice.
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Is your establishment covered by the Payment of Gratuity Act? If not are there any scheme for the payment of gratuity to the employees of the contractor?. These information are required for responding.
for gratuity claim five years continuous employment is the basic clause.
Yes Sir, our establishment covered under Payment of Gratuity Act. Our employees are deputed in our clients (principal employer) sites in pan India.
Payment of Gratuity Act says if an employee dies in case of any disease or accident his/her nominee or legal heir are entitled for gratuity. I think the completion of 5 year continue service shall not be necessary where the termination of services is due to death.
But i have a doubt about suicide case. Kindly advice.
5 years not mandatory in case of death. Hence, gratuity is payable to the legal heirs/ nominees.
The claimant must submit succession certificate to the employer showing proof of a legal successor/ heir of the deceased employee. Yes, in case of death service duration of 5 years is not requirement.
Regds,
Succession Certificate is required only when there is dispute for claimant/nominee. Legal Heir Certificate and Indemnity Bond may help to settle the Gratuity payment. Regards M K Rath
gratuity would be payable on pro rate basis in the instant case as this employee is dead now and the gratuity act does not go into the nature of death for all death less than five years
secondly, this would be paid to the designated nominee or if no nominee, to the heir of the deceased
If the gratuity is managed by LIC then then nominee or legal heir would get full gratuity till his retirement age.
Dear Mr Dogra
The circumstances under which gratuity becomes payable are enumerated under the Payment of Gratuity Act.Death is one of them. The Act does not specify that death should have occurred under specific circumstances. So the presumption is that whatever be the cause of death gratuity becomes payable. Here the cause of death is suicide. The Act does not say that if a person commits suicide gratuity cannot be claimed. Therefore my view is that in this case gratuity is payable subject to the fulfilling of the other conditions.
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