A contract workman has been working in the organization for the past 15 years, and his last working day was on 31.01.2017. Due to his disease (cancer), he was unable to work, but he received ESI (90% of wages) from 01.02.2017 to 27.11.2018. For the calculation of gratuity, which date should be taken - his last working date or his death date?
From India, Coimbatore
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1From India, Coimbatore
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Dear Alex, SINCE you have said that his last working day was 31.01.2017. Take only his last working day for Gratuity calculation.
From India, Hyderabad
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From India, Hyderabad
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As per Section 4 of the Payment of Gratuity Act 1972, gratuity becomes payable on the date of termination of service. While on ESI benefit period, one is still in service, and the termination of service has happened only on 27th November 2018.
From India, Mumbai
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From India, Mumbai
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Hi Whichever took place earlier will be the date for calculation of Gratuity . Payment of Gratuity Act is not concerned as to what ESIC does to its subscribers. Thanks and Regards
From India, Hyderabad
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From India, Hyderabad
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Combined reading of sec 2A and 4 of POG Act shows that the date of death is the date to be reckoned if the employee has not resigned or was not terminated from the last working day.
Varghese Mathew
Labour Law/HR Adviser
Tvm
From India, Thiruvananthapuram
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Varghese Mathew
Labour Law/HR Adviser
Tvm
From India, Thiruvananthapuram
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SALARY SHEET CALCULATION.xls