Dear sirs
One of our workers, when he was on leave, died accidentally by drowning in water. He had rendered only 8 months' service in our company. Now, kindly tell me whether he is eligible for Gratuity under The Payment of Gratuity Act,1972.
Thanks & Regards
From India, Kadapa
1One of our workers, when he was on leave, died accidentally by drowning in water. He had rendered only 8 months' service in our company. Now, kindly tell me whether he is eligible for Gratuity under The Payment of Gratuity Act,1972.
Thanks & Regards
From India, Kadapa
Yes, if your establishment is covered by Payment of Gratuity Act, he / his dependent should be paid gratuity. Since his length of service is only eight months, the amount of gratuity will be 15 days average salary. On the other hand, if you have taken any death cum gratuity policy from any Insurance Company, the insurers will pay him gratuity based on a formula which will enable the dependents to get service benefits extended to the deceased employee's date of retirement.
From India, Kannur
From India, Kannur
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Gratuity Eligibility.pdf
Gratuity eligibility for less than 5 yrs. (4yrs.240days). docx