1. Gratuity is given if he have served for continuous 5 years..in 4th year it should be more than 240 days.
2. In case of death or permanent disablement?? then the 5 yrs count is invalid.
3. now for calculation of gratuity you need to know his/her Basic+DA
CTC figure wouldnt help in calculating graatuity in your case.
4. Its calculated on the basis of 15 days per completed year of service...
5. Its divided by 26, as in gratuity calculation we take 26 working days for a month., not 30.
6. the formula:-
basic+da * 15 * number of service years / 26
refer to madras high court judgement[mettur beardshel] its 4 years and 240 days in last year, which makes workers eligible for gratuity, and not only 5 full years..
if u are disabled[partial/permanent] u need not qualify for 5 years rule.same applies on death matters.
it also includes legal strike period, lock out,legal layoff period, which is not due to employee's fault.
In gratuity we consider 26 days for 1 month work...its not that 1 month is having 26 days working period, thats not the logic, in other statues we consider 30 days..
if you are not having any gratuity fund with insurance company , then you have to set your own gp a/c fund, for that you need to have an actuary, he would be giving the assessment , every year, you have to make provisions for gp in balance sheet, and pay it before yearly closure , so that IT file can be filed.
The fund should be divided into bonds, securities, as prescribed by central, the actuary would be the best person to tell that. then it should also be audited, with audit report need to be undersigned by gp fund trustee yearly.
Now else than any moral turpitude case, arising out of in course of service , you can;t forfeit anyone's gratuity.
that is suppose i kidnap, i steal , i harass a person outside my premises, or the incident is no how connected with my employment,although its moral turpitude . then also still you need to pay me gratuity.