Dear Sir, Can you please let me know the rules of Gratuity act (death case) Thanks in advance Regards, Ramoji
From India, Hyderabad
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From India, Hyderabad
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Gratuity Act Provisions for Death Cases
Under section 4, in the case of the death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs are minors, the share of such a minor shall be deposited with the controlling authority. The controlling authority shall invest the same for the benefit of the minor in such a bank or other financial institution as may be prescribed until the minor attains majority.
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From India, Hyderabad
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Under section 4, in the case of the death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs. Where any such nominees or heirs are minors, the share of such a minor shall be deposited with the controlling authority. The controlling authority shall invest the same for the benefit of the minor in such a bank or other financial institution as may be prescribed until the minor attains majority.
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From India, Hyderabad
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Legally, yes, gratuity is not payable. However, if death is due to natural causes, and if you could convince your management, you could calculate 15/26 x every completed year of service. It all depends on how you value your employees' service to the organization. You can always justify it as special circumstances and not to be taken as a precedent.
From India, Madras
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From India, Madras
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Gratuity Payment in the Event of Natural Death
In the event of a natural death, the Gratuity is to be paid for the number of years the employee worked. For example, if an employee worked only for 6 months, he or she should be paid the Gratuity for ONE YEAR. The calculation is Basic + DA x 15 days / 26 days. Here, the Gratuity Act's 5-year completion of service does not apply. Gratuity eligibility—5 years+ service is applicable only to employees who are in continuous service. This is different. The natural death of an employee, for which Gratuity is to be paid, is completely different. Please do not mix up both together.
Regards,
Sundararaman
From India, Madras
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66In the event of a natural death, the Gratuity is to be paid for the number of years the employee worked. For example, if an employee worked only for 6 months, he or she should be paid the Gratuity for ONE YEAR. The calculation is Basic + DA x 15 days / 26 days. Here, the Gratuity Act's 5-year completion of service does not apply. Gratuity eligibility—5 years+ service is applicable only to employees who are in continuous service. This is different. The natural death of an employee, for which Gratuity is to be paid, is completely different. Please do not mix up both together.
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Sundararaman
From India, Madras
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I would like to add one more point: if there is any gratuity policy taken through LIC or any insurance agency, then in the case of death while in service, gratuity is calculated as if the deceased employee has served up to 58 years, and gratuity is paid accordingly. For example, if an employee joins the company at the age of 25 and expires after working for two years, then his/her legal heir will be paid gratuity for 33 years.
Regards, Uday
From India, Mumbai
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Regards, Uday
From India, Mumbai
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