Gratuity for Deceased Worker: Is It Granted After 8 Months of an 11-Month Contract?

Gratuity Eligibility for a Deceased Worker

The question pertains to the eligibility of gratuity for a worker who unfortunately passed away after serving only 8 months in an 11-month contract due to an accident.

In the case of death, the service conditions attached to the payment of gratuity will not be applicable. Therefore, you should pay gratuity considering a service of one year, amounting to 15 days' salary. If you have opted for any death cum gratuity scheme, please forward the matter to the insurer.

In the event that the death occurred due to an accident during employment, the dependents should receive compensation as mandated by the Employees' Compensation Act. If the deceased was covered by ESI, notify the ESI about the accident and subsequent death. The ESIC will manage the compensation process.

No minimum eligibility period applies in the case of death or disablement. The gratuity amount depends on the tenure of service and the last drawn salary. As per the Gratuity Act, gratuity is payable up to the date of death irrespective of whether the individual completed five years of service or not. If there is group insurance, then it is as per the terms of the group policy. As already stated by learned experts above, death in the course of employment entails compensation under the Employees Compensation Act and ESIC if the individual is a member.