Dear Members,
One of our company's (contractor) employees worked at a PE establishment (principal employer) since February 2016. Unfortunately, he passed away by suicide. In this case, are his nominees/surviving family eligible for gratuity? Please advise.
From India, Delhi
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One of our company's (contractor) employees worked at a PE establishment (principal employer) since February 2016. Unfortunately, he passed away by suicide. In this case, are his nominees/surviving family eligible for gratuity? Please advise.
From India, Delhi
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Is your establishment covered by the Payment of Gratuity Act? If not, are there any schemes for the payment of gratuity to the employees of the contractor? This information is required for responding.
From India, Madras
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181From India, Madras
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Yes, sir, our establishment is covered under the Payment of Gratuity Act. Our employees are deputed at our clients' (principal employers) sites across India.
The Payment of Gratuity Act states that if an employee dies due to any disease or accident, their nominee or legal heir is entitled to gratuity. I believe that the completion of 5 years of continuous service may not be necessary in cases where the termination of services is a result of death.
However, I have a question regarding cases of suicide. Kindly provide advice.
From India, Delhi
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The Payment of Gratuity Act states that if an employee dies due to any disease or accident, their nominee or legal heir is entitled to gratuity. I believe that the completion of 5 years of continuous service may not be necessary in cases where the termination of services is a result of death.
However, I have a question regarding cases of suicide. Kindly provide advice.
From India, Delhi
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5 years not mandatory in case of death. Hence, gratuity is payable to the legal heirs/ nominees.
From India, Kolkata
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From India, Kolkata
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The claimant must submit a succession certificate to the employer showing proof of being the legal successor/heir of the deceased employee. Yes, in the case of death, a service duration of 5 years is not a requirement.
Regds,
From India, Delhi
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Regds,
From India, Delhi
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Succession Certificate is required only when there is dispute for claimant/nominee. Legal Heir Certificate and Indemnity Bond may help to settle the Gratuity payment. Regards M K Rath
From India, Rourkela
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From India, Rourkela
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Gratuity would be payable on a pro-rata basis in the instant case as this employee is deceased now, and the gratuity act does not consider the circumstance of death for deaths occurring in less than five years.
Secondly, this amount would be paid to the designated nominee, or if there is no nominee, to the heir of the deceased.
From India, Chandigarh
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Secondly, this amount would be paid to the designated nominee, or if there is no nominee, to the heir of the deceased.
From India, Chandigarh
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If the gratuity is managed by LIC then then nominee or legal heir would get full gratuity till his retirement age.
From India, Mumbai
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From India, Mumbai
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Dear Mr. Dogra,
The circumstances under which gratuity becomes payable are enumerated under the Payment of Gratuity Act. Death is one of them. The Act does not specify that death should have occurred under specific circumstances. So, the presumption is that whatever the cause of death, gratuity becomes payable. Here, the cause of death is suicide. The Act does not say that if a person commits suicide, gratuity cannot be claimed. Therefore, my view is that in this case, gratuity is payable subject to fulfilling the other conditions.
From India, Madras
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The circumstances under which gratuity becomes payable are enumerated under the Payment of Gratuity Act. Death is one of them. The Act does not specify that death should have occurred under specific circumstances. So, the presumption is that whatever the cause of death, gratuity becomes payable. Here, the cause of death is suicide. The Act does not say that if a person commits suicide, gratuity cannot be claimed. Therefore, my view is that in this case, gratuity is payable subject to fulfilling the other conditions.
From India, Madras
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc