Gratuity Dilemma: Should We Pay a Worker Who Passed Away on Their Second Day?

A worker joined our company, and on the second day of work, he passed away. The question is whether we should pay him gratuity. This query was raised during an interview. Please help.

Yes, in your case, you have to pay gratuity for one year. In case of death, the gratuity act stands silent, and where there is a silent feature of the act, you have to give benefits in favor of the employee/worker. If you have insured the gratuity, then in that case, you have to pay him gratuity up to his attaining the age of 58 years.

Regards,
Tushar

In the case of death while in service, the time limit for the eligibility clause of 5 years is not applicable. The benefit is paid to the dependents for a full term, as it is done in the case of a retiring employee, according to the terms and conditions of employment at the retiring age. For the past service, if any, it is calculated on an actual basis, and the rest on an assumed basis as if he is in continuous service.

Regards,
Tushar

In case of death before the completion of six months of service, the deceased employee will not be eligible for gratuity.

Gratuity Eligibility in Case of Early Death

A worker joined our company, and on the second day of work, he passed away. Should we pay him gratuity? This was a question asked in an interview. Please help.

You are mistaken. The Gratuity Act is not silent on death cases. In the event of death or total permanent disability, the nominee/employee will receive gratuity after a minimum of one year of continuous service. According to the Act, the employee is not eligible for gratuity for the remaining service.

Regards,
Varghese Mathew

Thank you for your responses. However, they have left me more confused. What will be the minimum eligibility period for receiving gratuity in the event of death after the next day of joining? Furthermore, what if the individual is a contract staff member? Please reply.

Thank you.