1 of our employee has been passed away in an accident & his tenure in co. was of 1 year+.Is he eligible for gratuity & if yes then how do we calculate.
Under provision 1 to Section 4(1), the provision of continuous service of 5 years shall not be necessary where did termination of employment happened due to death or disablement. In case of death the amount of gratuity be paid to the nominee. If there was no nomination made gratuity shall be paid to the heir. Where the nominee or heir is a minor then the amount of gratuity shall be submitted to the controlling authority. The minor can use this fund when he attains majority.
For calculation part see Payment of Gratuity Act, Rules, Forms, Returns & All Other Information as there are many contributing factors that cannot be stated here
In addition to what our learned members have already stated, if your company has taken a policy with LIC and the risk premium has been paid the employee will get Gratuity till his superannuation if he had been alive. In other words year of superannuation - Date of Joining.
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