Gratuity Settlement After a Tragic Loss: How Do I Handle This Situation?

Dear Seniors, I am working in a manufacturing unit, and recently one of my workers attempted suicide and passed away. Now, I would like to settle the gratuity amount for him as he had joined in 2009. I am unsure whether he is eligible for gratuity. If he is eligible, could you please guide me on the procedures and the calculation involved? Your assistance in this matter would be greatly appreciated.

With Regards,
A. Mahesh

If his nominee is designated, they shall be paid the gratuity if you have 10 or more persons employed. If he has not provided a nomination, his legal heirs are to be paid the amount.

Regards,
Varghese Mathew

"Dear,

His legal heirs are eligible to receive gratuity for the number of years the employee served with the organization."

Thank you

No. In the case of death or total permanent disability, one year of service is enough for gratuity.

Regards,
Varghese Mathew
[Phone Number Removed For Privacy Reasons]

There is a gratuity calculation formula: (BASIC + DA * 15 * COMPLETED YEARS OF SERVICE / 26).

Procedure in Case of Death

In case of death, you have to find out who the nominee is and ask them to fill out FORM J. If no nominee is mentioned, then you should ask the legal heir to fill out FORM K and submit that form to the Controlling Authority of your area for further procedures.

Regards

You should use the calculation formula below for the payment of gratuity:

Basic * 15 * 1/26/12

Regards,
Sanjay Patel
Manager HR

Gratuity Eligibility in Case of Employee's Death

Five years of continuous service are not applicable in the case of an employee's death. Therefore, in the stated scenario, gratuity is payable to the nominee of the deceased employee. For calculations, it is suggested to thoroughly review the Gratuity Act.

Thank you.