Gratuity Eligibility After Employee's Death: Does 1.5 Years of Service Qualify?

Hi Seniors, One of our employees worked with our organization for the past 1.5 years. Two months ago, he passed away due to a heart attack. Is he eligible for gratuity or not? Please confirm as per the Gratuity Act and rules.

Hi, in the case of an employee's death, there is no minimum eligibility period. The employer should pay gratuity to the nominee of the employee. The gratuity amount is payable up to the date of death irrespective of whether the employee completed five years or not. If your organization opted for a Group Gratuity Scheme with any insurance companies, then the insurance has to pay the gratuity amount.

Yes, his dependents should be paid gratuity. The service gratuity is calculated based on his last drawn salary. If his service was less than 1.5 years, pay him as if his service is one year. If his service exceeds 6 months in the second year, pay him gratuity for two years. If you have taken insurance, then get the amounts from the insurers. Obviously, if the policy covers death cum gratuity, the dependents of the deceased will receive better gratuity, which is computed on the presumption of service until his superannuation.

Your employee, who has been working with your organization for the past 1.5 years, is eligible for gratuity. Their legal heir needs to be paid (Basic+DA) for 15 days if the second year is less than 6 months and for 30 days if they have worked for more than 6 months.

Please take a copy of the Nomination form obtained when the deceased employee joined your company. If no Nomination Forms (F, G, & H as the case may be) were obtained, you have to obtain NOCs from all the members of his family, including parents and siblings, in the form of sworn affidavits. Obtain applications in Form J & K. If there is no consensus among the family members, then it may be required to insist on a 'successors/heirs certificate' from a competent court and decide on disbursements. As an employer, provide appropriate intimation in Form No. 'L' before this. Please refer to the attached Gratuity Rules for guidance.

Hi, As per the Act, the deceased employee is eligible for gratuity until their last working day.

Thanks