Gratuity Calculation for a Missing Employee Declared Civil Dead: How to Determine Service Length?

Dear all,

I want to know the gratuity calculation as per the act for a missing employee with the following details:

Date of joining: 4/11/97
Missing date: 1/5/2009 (DDR Lodged)
Civil death: 18/01/2017

What will be his length of service?

Length of service for gratuity will be from 04/11/97 to 01/05/2009 or the date of commencement of absence from the company.

Employee Separation Due to Uninformed Leave

If an employee is on uninformed leave for a continuous 8 days, they are considered separated since their last working day. Full and final settlement should be done and provided to their nominee. If the employer is unable to pay due to a lack of information about the nominee, then the FnF amount is submitted under the Labour Welfare Fund after 3 years.

Gratuity Calculation for the Employee

Now, as per your query, the gratuity for the above employee will be as follows:

No. of years worked: 11 years

Gratuity = (Last Drawn Basic Salary/26) * 15 * 11

Actions Taken Between Missing DDR and Date of Death

The question is: what actions were taken between the missing DDR that was lodged on 1-5-2009 and 18-1-2017, the date of death? Were they continued on the rolls of the company, or were their names struck off after giving at least three opportunities to report for work and their failure to do so?

If their names were struck off after due legal compliance, then their gratuity is payable from the date of joining till the date of DDR. If not, then the gratuity will be payable till their date of retirement.

Regards,
Vinayak Nagarkar
HR Consultant

Hi all,

In continuation of the above post, the company considered the period between the date of missing (1/5/2009) and the date of civil death (18/01/2017) as leave without pay (2819 days) and generated negative salary, deducting that from the employee's salary. However, when paying gratuity, the company considered the date of missing (1/5/2009) as the last day. Furthermore, no legal action has been taken by the company for this period.

Please let me know if you need any further assistance or clarification on this matter.

Thank you.