I have two questions:
1. Suppose one employee joined a company on 01.01.2011 as a regular employee and he died on 03.01.2011. Will he be eligible for Gratuity? If he is eligible, then what will be his gratuity amount, and how to calculate the gratuity amount in this type of case?
2. Whether an employee, due to an on-duty accident, became Permanently Totally Disabled and will never be able to work again, be eligible to receive Gratuity even if they have not completed 5 years of continuous service? If yes, then what will be the procedure for the calculation of Gratuity?
Please reply with Section and case reference (if any) for both cases.
Regards, Jawed Alam
From India, Dhanbad
1. Suppose one employee joined a company on 01.01.2011 as a regular employee and he died on 03.01.2011. Will he be eligible for Gratuity? If he is eligible, then what will be his gratuity amount, and how to calculate the gratuity amount in this type of case?
2. Whether an employee, due to an on-duty accident, became Permanently Totally Disabled and will never be able to work again, be eligible to receive Gratuity even if they have not completed 5 years of continuous service? If yes, then what will be the procedure for the calculation of Gratuity?
Please reply with Section and case reference (if any) for both cases.
Regards, Jawed Alam
From India, Dhanbad
The same matter has been discussed earlier also. In the case of death and total disability, the employee should be paid gratuity at the rate of 15 days' salary for the completed years of service, and the completion of five years of service is not required. Here, the issue is that the deceased had not even completed one year of service. Had he completed at least six months of service, the dependents or the employee totally disabled should have received 15 days' salary calculated at the rate of one year of service. Since there seems to be no court ruling in support, we have to rely on principles of natural justice and pay the same amount for less than six months as well.
For getting gratuity, the disablement need not be while on duty. If the accident had taken place while on duty, he would be eligible for compensation as per the Employees' Compensation Act, and that is not based on service but on some factors which will vary according to the age of the employee and his last drawn salary.
Regards,
Madhu.T.K
From India, Kannur
For getting gratuity, the disablement need not be while on duty. If the accident had taken place while on duty, he would be eligible for compensation as per the Employees' Compensation Act, and that is not based on service but on some factors which will vary according to the age of the employee and his last drawn salary.
Regards,
Madhu.T.K
From India, Kannur
Dear Madhu T.K,
Thank you for your reply.
During my recent interview, I was asked two questions to which I responded similarly to your suggestion. However, my answers did not satisfy them, and they requested references to specific sections of the Payment of Gratuity Act or any relevant case law. Do you have any insights or examples with section or case references that could help me address their queries effectively?
Your assistance would be greatly appreciated.
Thank you.
From India, Dhanbad
Thank you for your reply.
During my recent interview, I was asked two questions to which I responded similarly to your suggestion. However, my answers did not satisfy them, and they requested references to specific sections of the Payment of Gratuity Act or any relevant case law. Do you have any insights or examples with section or case references that could help me address their queries effectively?
Your assistance would be greatly appreciated.
Thank you.
From India, Dhanbad
i am still not clear...please explain me again if employee dies and not completed 5 years of service then also he is eligible for gratuity??
From India, Ahmadabad
From India, Ahmadabad
In death cases, completion of five years of service is not required. That means the dependents of the deceased employee can get gratuity even if the employee had not put in five years of service.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
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