The minimum service of not less than 5 years continuous service is not necessary in the case of termination of employment due to the death of the employee. You have to compute gratuity based on the actual no of years of service rendered by him till his death only. Therefore,
Amount of gratuity in case of death = Last drawn wages [sum of basic+D.A] /26 X 15 X No. of years of service rendered.
From India, Salem
The Payment of Gratuity Act by its section 4A has mandated investing the gratuity fund in LIC but the same is being implemented by the state according to their choice. Some states, like Kerala, have notified the date on which this provision has become mandatory. If your state has notified the date on which section 4A is made effective, then your establishment should also invest your gratuity fund in LIC or such other insurers which are notified by the state for this purpose. Again it is not mandatory that you should take a death cum gratuity policy but it is always advisable to have this kind of policy which will assure payment of gratuity based on service till date of superannuation in the case of death while in service against payment of a small premium.
Therefore, please check whether your establishment has taken policy like this and if so the dependents of the deceased will get the benefit of higher gratuity. The gratuity in such cases is paid not by the employer directly to the employee or the dependents of the deceased employee but by the LIC to the Gratuity Trust and then by the gratuity trust to the employee or the dependent of the deceased employee, as the case may be.
Madhu T K
From India, Kannur
It is very interesting that the thread starter, Ms/Mr Aditi has not replied to various queries put by us, implying that she/ he is not interested to take our advices. This is just unprofessional from an HR person.
Madhu T K
From India, Kannur
I have been seeing your mails from time to time and I appreciate your thoroughness and accuracy of advice. I am working as Head of HR/ IR/Admin in IMC Ltd (Chennai. My contact number is 9840365751 - email - please share your number and email id too so that I can be in touch with you).
From India, Chennai
Mr Madhu always provide valued advice on typical issues where a normal HR person can't comment. Moreover, he explained the matter in connection with the sections applies under the act/s. The language is always concise, to the point, professional and well explained.
There are other senior experts like Umakanth sir, Dr. PBS Kr., Mr Dinesh Divekar and many more who are spreading knowledge in the group through their valued suggestions on various matters.
On behalf of the junior members and other learned persons, I thanks to all the above and other senior person/s for their suggestions and ideas.
From India, Delhi