Gratuity Eligibility: Can an Employee's Family Claim It After 4 Years of Service?

Hi,

One employee of my company has completed 4 years of service, and unfortunately, his death occurred. My question is, is he eligible for gratuity? As per the Gratuity Act, he hasn't completed 5 years in the company. Kindly clarify this for me.

Thanks & Regards,
Stanley:icon1:

Dear Stanley,

The individual employee is eligible for four years of gratuity. In the case of death, a five-year clause is not required. You can refer to Section 4 of the Payment of Gratuity Act.

Thank you,
J. S. Malik

Dear Stanley,

The clause of 5 years is applicable only in the case the separation is due to resignation, dismissal, or termination but not in the case of death. In the case of death, he is eligible for the gratuity, even if he has worked for 1 year.

"One employee of my company has completed 4 years of service, and unfortunately, his death occurred... My question is, is he eligible for gratuity? As per the Gratuity Act, he hasn't completed 5 years in the company... Kindly make me clear.

Thanks & Regards,
Stanley:icon1:

Stanley,

Every employee is entitled to Gratuity on completion of 5 years of service, except in the case of death or disablement. Please refer to the Gratuity Act of 1972 for more details.