Gratuity Eligibility After Employee's Passing: Does 3 Years of Service Qualify?

If the person has completed 3 years in the organization and in any instance, if he passed away, will he be eligible for the gratuity amount?

Gratuity Eligibility in Case of Death

There is no requirement of minimum service to receive gratuity in the case of death. I shall quote the provision as under:

4. Payment of gratuity:
- (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years:
- (a) on his superannuation, or
- (b) on his retirement or resignation, or
- (c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

Regards,
Abbas.P.S

In the case of death, the condition of 5 years of service does not apply. The employer is required to pay the gratuity due to the heirs of the deceased employee under Sec. 4(c) and the proviso therein.

Don't need 3 years of service. If an employee with one year of continuous service is terminated due to death or disablement, he is also eligible for gratuity.

Thank you.

Dear Ms. Kirti,

Yes, he is eligible for Gratuity since this is a death case. Section 4 (1) (c) states:

"Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement."

Govind Pawar
Cell - 9823411433

In case of death, there is no need for continuous service of 5 years. However, the gratuity will be paid only for the actual year of service. In the above case, the gratuity is payable for 3 years. It is calculated as follows: Basic + Dearness allowance / 26 * 15 days x 3 years.