Gratuity Dilemma: Should We Pay for an Employee's Death After Just 4 Months?

Respected seniors,

I am Ramu, working as DM-HR at Vijayawada. I need clarification on gratuity payment in the case of death. One of our employees just completed 4 months of service and passed away during working hours due to a personal health problem (heart attack). Does our company have to pay gratuity for life cover even if the employee served for less than one year? Kindly advise me on this issue.

Ramu

Dear Mr. Ramu,

The question of payment of gratuity to an employee who has put in 4 months of service does not arise.

To be eligible to receive gratuity, an employee should complete one year of service. Since the employee has completed 4 months of service, he/she will not be entitled to receive gratuity.