Hi sirs, I would like to know whether gratuity benefits for the employee at super annutation/ retirement will be the same for the employee in case of death? Swapna Hyderabad
From India, Hyderabad
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From India, Hyderabad
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Dear Swapna,
Please refer to sec. 4(1)(c) of the Payment of Gratuity Act, 1972. Termination of employment occasioned by death or disablement of the employee does not require the minimum qualifying service of not less than 5 years. All other things remain the same.
From India, Salem
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6108Please refer to sec. 4(1)(c) of the Payment of Gratuity Act, 1972. Termination of employment occasioned by death or disablement of the employee does not require the minimum qualifying service of not less than 5 years. All other things remain the same.
From India, Salem
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Gratuity Benefits Under the Payment of Gratuity Act 1972
Under Section 4 of the Payment of Gratuity Act 1972, gratuity shall be payable to an employee upon the termination of his employment after he has rendered continuous service for not less than 5 years.
Termination of employment may result from superannuation, retirement, resignation, death, or disablement due to accident/disease.
As held in the case of Darshan Engineering Works vs. controlling authority, where an employee continues to work after superannuation, he will be entitled to gratuity for the entire period and not only up to his superannuation.
In the explanation to Section 4(1), disablement means such disablement as incapacitates an employee from the work which he was capable of performing before the accident or disease resulting in such disablement. Under Section 4(4), if an employee continues in his current employment after disablement at reduced wages, the gratuity for the period up to his disablement is to be calculated at such wages as he was being paid before disablement. The gratuity for the period after disablement is to be calculated on such reduced wages.
According to provision 1 of Section 4(1), the requirement of continuous service of 5 years shall not be necessary where termination of employment occurred due to death or disablement. In the case of death, the amount of gratuity shall be paid to the nominee. If no nomination was made, gratuity shall be paid to the heir. If the nominee or heir is a minor, then the gratuity amount shall be submitted to the controlling authority. The minor can access this fund when he attains majority.
See http://www.shramsamadhan.com/p/payme...act-rules.html
From India, Kolkata
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Under Section 4 of the Payment of Gratuity Act 1972, gratuity shall be payable to an employee upon the termination of his employment after he has rendered continuous service for not less than 5 years.
Termination of employment may result from superannuation, retirement, resignation, death, or disablement due to accident/disease.
As held in the case of Darshan Engineering Works vs. controlling authority, where an employee continues to work after superannuation, he will be entitled to gratuity for the entire period and not only up to his superannuation.
In the explanation to Section 4(1), disablement means such disablement as incapacitates an employee from the work which he was capable of performing before the accident or disease resulting in such disablement. Under Section 4(4), if an employee continues in his current employment after disablement at reduced wages, the gratuity for the period up to his disablement is to be calculated at such wages as he was being paid before disablement. The gratuity for the period after disablement is to be calculated on such reduced wages.
According to provision 1 of Section 4(1), the requirement of continuous service of 5 years shall not be necessary where termination of employment occurred due to death or disablement. In the case of death, the amount of gratuity shall be paid to the nominee. If no nomination was made, gratuity shall be paid to the heir. If the nominee or heir is a minor, then the gratuity amount shall be submitted to the controlling authority. The minor can access this fund when he attains majority.
See http://www.shramsamadhan.com/p/payme...act-rules.html
From India, Kolkata
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc