A worker joined our company, on the 2nd day of work he expired. Should we pay him gratuity? This was a question asked in an interview. Pl help
From India, Bhubaneswar
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From India, Bhubaneswar
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Yes, in your case, you have to pay gratuity for one year. In case of death, the gratuity act stands silent, and where there is a silent feature of the act, you have to give benefits in favor of the employee/worker. If you have insured the gratuity, then in that case, you have to pay him gratuity up to his attaining the age of 58 years.
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Tushar
From India, Pune
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Tushar
From India, Pune
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In the case of death while in service, the time limit for the eligibility clause of 5 years is not applicable. The benefit is paid to the dependents for a full term, as it is done in the case of a retiring employee, according to the terms and conditions of employment at the retiring age. For the past service, if any, it is calculated on an actual basis, and the rest on an assumed basis as if he is in continuous service.
Regards,
Tushar
From India, Pune
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Regards,
Tushar
From India, Pune
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In case of Death before completion of Six month service deceased employee will not be eligible for Gratuity.
From India, Pune
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470From India, Pune
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You are mistaken. The Gratuity Act is not silent on death cases. In the event of death or total permanent disability, the nominee/employee will receive gratuity after a minimum of one year of continuous service. According to the Act, the employee is not eligible for gratuity for the remaining service.
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Varghese Mathew
From India, Thiruvananthapuram
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Regards,
Varghese Mathew
From India, Thiruvananthapuram
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Thank you for your responses. However, they have left me more confused. What will be the minimum eligibility period for receiving gratuity in the event of death after the next day of joining? Furthermore, what if the individual is a contract staff member? Please reply.
Thank you.
From India, Bhubaneswar
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Thank you.
From India, Bhubaneswar
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