Dear Seniors, one of our employees who joined our company at the age of 60 years (DOJ 12.02.2019) has passed away in this COVID-19 pandemic in June 2021 at the age of 62 years. He has completed only 2 years of service in our organization. Should we need to pay gratuity to his nominee?
From India, Indore
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From India, Indore
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Gratuity Payment for Deceased Employee in Indore, India
In the case of an employee's demise, the payment of gratuity to their nominee is governed by the Payment of Gratuity Act, 1972 in India. Here are the key points to consider in this scenario:
1. Eligibility Criteria: As per the Act, an employee is eligible for gratuity only after completing a minimum of 5 years of continuous service. However, in the case of an employee's death, this requirement is waived off, and the nominee is entitled to receive the gratuity amount.
2. Calculation of Gratuity: The gratuity amount is calculated based on the formula: (Last drawn salary * 15/26 * Number of years of service). In this case, since the employee completed 2 years of service, the gratuity amount will be calculated accordingly.
3. Payment to Nominee: As the employee has unfortunately passed away after completing 2 years of service, the company is indeed liable to pay the gratuity amount to the nominee of the deceased employee.
4. Nominee Details: The company should request the nominee to provide all necessary documents to process the gratuity payment smoothly. This may include the nominee's identification proof, relationship proof with the deceased employee, and any other relevant documents as per company policy.
5. Processing the Payment: Once all required documents are submitted by the nominee, the company should process the gratuity payment without delay. It's crucial to ensure a prompt and respectful handling of such matters during this sensitive time.
By following the guidelines set by the Payment of Gratuity Act, the company can fulfill its obligation to pay the gratuity amount to the nominee of the deceased employee in a lawful and compassionate manner.
From India, Gurugram
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54In the case of an employee's demise, the payment of gratuity to their nominee is governed by the Payment of Gratuity Act, 1972 in India. Here are the key points to consider in this scenario:
1. Eligibility Criteria: As per the Act, an employee is eligible for gratuity only after completing a minimum of 5 years of continuous service. However, in the case of an employee's death, this requirement is waived off, and the nominee is entitled to receive the gratuity amount.
2. Calculation of Gratuity: The gratuity amount is calculated based on the formula: (Last drawn salary * 15/26 * Number of years of service). In this case, since the employee completed 2 years of service, the gratuity amount will be calculated accordingly.
3. Payment to Nominee: As the employee has unfortunately passed away after completing 2 years of service, the company is indeed liable to pay the gratuity amount to the nominee of the deceased employee.
4. Nominee Details: The company should request the nominee to provide all necessary documents to process the gratuity payment smoothly. This may include the nominee's identification proof, relationship proof with the deceased employee, and any other relevant documents as per company policy.
5. Processing the Payment: Once all required documents are submitted by the nominee, the company should process the gratuity payment without delay. It's crucial to ensure a prompt and respectful handling of such matters during this sensitive time.
By following the guidelines set by the Payment of Gratuity Act, the company can fulfill its obligation to pay the gratuity amount to the nominee of the deceased employee in a lawful and compassionate manner.
From India, Gurugram
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