Gratuity in case of death of an employee - dies in a span of 1.4 years of working in current company

lalit joshi
Please let me know if an employee dies in a span of 1.4 years of working in current company. Will he be eligible for gratuity.
If yes then till what age 58 or 60 years and for which all states it will be applicable.
nathrao
Act itself states that incase of death,5 year rule does not apply and person is entitled for gratuity for the period of service done before death.
Madhu.T.K
Service gratuity is available only for the period of service till death. At the same time, if your company has taken any Gratuity policy from the LIC with a specific clause of death benefits then only the dependents of the deceased will get gratuity based on the superannuation age declared by the company. As such if no such policy exists, the gratuity payable will be limited to just 15 days pay because the deceased had only 1 year and 4 months and that fraction of 4 months will any way be ignored. On the other hand, if you have had your gratuity invested in LIC and there exists a death cum gratuity provision, then the LIC will do a calculation of gratuity which the deceased would otherwise be entitled had he completed his superannuation date, 58 or 60, as the case may be.
lalit joshi
Mr. Madhu is this act applicable for J&K state.
D Phani Kumar
Dear Mr. Lalit Joshi,
His legal heirs are entitled to receive the gratuity @ 15 for one year only for the service of one year and four months rendered by the employee, as the fraction of less than six months will not be considered under Section 4(2) of the Payment of Gratuity Act 1972.
D. Phani Kumar
General Manager- HR
Heidelberg Cement India Limited
Madhu.T.K
Yes, the Payment of Gratuity Act extend to the whole of India. However, in respect of any plantation or port in J&K, this Act is not applicable but for factories and shops and establishments the same is applicable.
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