Gratuity eligibility in death cases - service was 5 month till the date of death, Is he eligible for the Gratuity?

JitenderBajwa
Hi, I would like to know the gratuity eligibility in death cases.
One of our employees died, His service was 5 month till the date of death, Is he eligible for the Gratuity As per act?
We want to know minimum number of service required for Gratuity in death case,
If gratuity is payable, so how many years of gratuity will be payable?
vmlakshminarayanan
Hi,
If your employer had tie up with LIC under Group Gratuity Scheme( with option of special rider) the Nominee would have got the full gratuity amount till the actual date of retirement of the deceased employee, irrespective of number of years completed by the deceased employee.
In the absence of tie up with LIC Group Gratuity Scheme the Employer is bound to pay Gratuity subject to fulfillment of the eligibility criteria as stipulated by the Gratuity Act. In the case of deceased employee with 5 months service which is less than one year, strictly speaking the nominee is not eligible for Gratuity. However the employer on humanitarian basis may consider 5 months service as one year and pay gratuity for one year which is optional and not compulsory.
shobha-jai
Hi Everyone
I need to know about Weather Gratuity is eligible for Death employee. He is having less than 5 years of services as per Gratuity act its eligible but one of Labour Inspector told its not eligible it seems so please clarify.
Raju Gorantla
HI SIr,

One of our Labour expired while on duty and he worked with us for only 15 days. Is he eligible for Gratuity or not as per act??
Please clarify.

We have paid compensation as per the Workmen Compensation act 1923.
KK!HR
This opinion is in case there is no gratuity policy from any insurance agency.
The Proviso to Section 4 (1) of the Payment Of Gratuity Act 1972 states that the pre-condition of completion of continuous service of five years for payment of gratuity shall not be necessary where the termination of the employment of any employee is due to death or disablement. So gratuity is payable. There is no formula for calculating gratuity payable where the continuous service is less than 5 years or the minimum amount specified.
Since the employee has worked for 15 days only, you may pay one month salary and mention it to be inclusive of gratuity. The company can have a policy regarding such cases.
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