As per Payment of Gratuity Act gratuity is paid for actual service years irrespective of whether employee completed 5 years or not for death cases. However if you have opted for LIC Group Gratuity scheme and have paid the contributions, full gratuity will be paid by LIC in case of death of employee including balance service. This is an added advantage if LIC policy is taken.
From India, Bangalore
From India, Bangalore
Dear Vasant,
Before giving any opinion we should go through the definition of the employee which may be read as under:
Sec 2 (e) "employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.
After going through the definition it is clear that apprentice is not covered under this Act but it seems to me that we are not to consider the length of service of a trainee also if he does not do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work. If a person is appointed as trainee under the I E (S O) Act, 1946 / CSO & do some work of any of the nature as detail out above as part of the training scheme then in my opinion this period of service should not be treated as service rendered for counting the service period for payment of gratuity. In general, management after the completion of trainee period if there happens to be a vacancy then they re-employ them after clearing the F&F & adopting the procedure for interview etc. After adopting this procedure we are not to apply our mind for consideration of this service period. In this way if a person is appointed as trainee & doing any of the work as mentioned above then his service should be considered in the length of service for consideration of period of service under this Act. Rest this all depend upon the Authorities under the Act that how they interpret the matter in question but even then the situation is more favouable for a person who has worked ad trainee & is in continuity of service
Opinion/ comments submitted as requested.
Regards,
R.N.Khola
From India, Delhi
363Before giving any opinion we should go through the definition of the employee which may be read as under:
Sec 2 (e) "employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity.
After going through the definition it is clear that apprentice is not covered under this Act but it seems to me that we are not to consider the length of service of a trainee also if he does not do any skilled, semi-skilled, or unskilled, manual, supervisory, technical or clerical work. If a person is appointed as trainee under the I E (S O) Act, 1946 / CSO & do some work of any of the nature as detail out above as part of the training scheme then in my opinion this period of service should not be treated as service rendered for counting the service period for payment of gratuity. In general, management after the completion of trainee period if there happens to be a vacancy then they re-employ them after clearing the F&F & adopting the procedure for interview etc. After adopting this procedure we are not to apply our mind for consideration of this service period. In this way if a person is appointed as trainee & doing any of the work as mentioned above then his service should be considered in the length of service for consideration of period of service under this Act. Rest this all depend upon the Authorities under the Act that how they interpret the matter in question but even then the situation is more favouable for a person who has worked ad trainee & is in continuity of service
Opinion/ comments submitted as requested.
Regards,
R.N.Khola
From India, Delhi
Hello jks64
I have read your topic. As far as PG Act 1972 is concerned gratuity is paid to an employee only for actual service rendered by an employee and there is no provision for calculation and payment also after death of an employee or it may be termed that unserved period can not be taken into a/c.For death case it is not necessary to complete 5 yrs of service
pkc3000
From India, Koraput
I have read your topic. As far as PG Act 1972 is concerned gratuity is paid to an employee only for actual service rendered by an employee and there is no provision for calculation and payment also after death of an employee or it may be termed that unserved period can not be taken into a/c.For death case it is not necessary to complete 5 yrs of service
pkc3000
From India, Koraput
Dear Vikas Singh,
You have mentioned that 6 months of attenadance will be considered as one year, for gratuity calculation. But this statement is not correct.
As per Gratuity Act, period in excess of 6 months will be rounded up as one year. Accordingly 6 months and below will be rounded down and will not be taken into account for gratuity calculation.
Abbas.P.S
From India, Bangalore
You have mentioned that 6 months of attenadance will be considered as one year, for gratuity calculation. But this statement is not correct.
As per Gratuity Act, period in excess of 6 months will be rounded up as one year. Accordingly 6 months and below will be rounded down and will not be taken into account for gratuity calculation.
Abbas.P.S
From India, Bangalore
Dear Member,
The Payment of Gratuity Act, 1972 do not have any provision regarding payment of gratuity by the employer to the nominee(s)/ legal heir(s) for the remaining period of unserved service after the death of the employee. The payment is to be made only for actual service rendered by the deceased employee.
However it is the discreation of the management to pay gratuity for the balance period also. In our concern we are paying for the whole life (upto 58 years) period. In case of death inside the premises.
For actual or normal death we pay only service period.
Also we will not take the apprenrticeship period for calculation purpose.
Probation and Confirmation period only taken into account for preparation of gratuity.
Regards
R.Palaniswamy
From India, Coimbatore
The Payment of Gratuity Act, 1972 do not have any provision regarding payment of gratuity by the employer to the nominee(s)/ legal heir(s) for the remaining period of unserved service after the death of the employee. The payment is to be made only for actual service rendered by the deceased employee.
However it is the discreation of the management to pay gratuity for the balance period also. In our concern we are paying for the whole life (upto 58 years) period. In case of death inside the premises.
For actual or normal death we pay only service period.
Also we will not take the apprenrticeship period for calculation purpose.
Probation and Confirmation period only taken into account for preparation of gratuity.
Regards
R.Palaniswamy
From India, Coimbatore
Dear Member,
Gratuity is payable to an employee for the service he has rendered to the company. In case of death the company is not liable to pay for the future unserved service period.
But one must complete 5 years of service for Eligible of Gratuity.
All the best,
A.G. Rangarajan
9741155458
From India, Bangalore
Gratuity is payable to an employee for the service he has rendered to the company. In case of death the company is not liable to pay for the future unserved service period.
But one must complete 5 years of service for Eligible of Gratuity.
All the best,
A.G. Rangarajan
9741155458
From India, Bangalore
Hi,
In The payment of Gratuity Act, there is no provision that the employer should pay the Gratuity upto the retirement age to the deceased employee.
But there is a Group Gratuity Scheme with LIC in this the LIC make the payment to the employees after considering all those years upto the retirement age ( upto 58 yrs.) on the basis of his present Basic+DA
Suppose the employee working for the last 3 three years in the company and having the 34 yrs of age and during the working he dies than LIC will make the payment of ( 58-34 =24+3) 27 yrs.
Regards
Rajiv Singh
From India
In The payment of Gratuity Act, there is no provision that the employer should pay the Gratuity upto the retirement age to the deceased employee.
But there is a Group Gratuity Scheme with LIC in this the LIC make the payment to the employees after considering all those years upto the retirement age ( upto 58 yrs.) on the basis of his present Basic+DA
Suppose the employee working for the last 3 three years in the company and having the 34 yrs of age and during the working he dies than LIC will make the payment of ( 58-34 =24+3) 27 yrs.
Regards
Rajiv Singh
From India
4 Payment of Gratuity:- Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than 5 years. ** Provided that the completion of continuous service of 5 years shall not be necessary where the termination of the employment of any employee is due to death or disablement. ** (in excess of 6 months the employer shall pay gratuity at the rate of 15 days salary/wage @ The amount of Gratuity payable to an employee shall not exceed Rs. 10,00,000/-
From India, Pune
From India, Pune
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