Dear all 1) In the earlier reply I assumed that Employee under reference is regular employee 2) If, remember if you have made LIC Group Gratuity Trust & the employee's name is included in the LIC list, then only LIC will calculate gratuity as if employee has rendered service up 58 years of age.3) Employer has to submit the claim form to LIC 4) It is not obligatory on the part of employer to make LIC Group Gratuity trust. Employer is only liable for payment of Gratuity for the services completed by employee.5) Gratuity calculation Formula Salary (Basic+DA )= 5000/26X15X20 years=Rs 57692/- 6) As mentioned above if employee is a member of PF & FPF his family ( Widow/widower ) will be eligible for pension & PF withdrawl benefit as per PF Act 1952
SDP
From India, Kolhapur
30SDP
From India, Kolhapur
Dear Syed ji, Your query is replied by Shri. S D Patil. Gratuity calculation formula take it as example. This case the nominee of deceased is entitled for gratuity of 1 year i.e. 15 days salary.
From India, Mumbai
From India, Mumbai
Dear SDP,
Your advice is not quite correct. Please read my comments as under:
1. It is incorrect to advise that "you legally not required to pay gratuity as the person under reference has rendered only 4 months service".
In this case, the Company is legally obliged to pay Gratuity to the nominee of the deceased, calculated for 4 months' service.
2. Again, your suggestions that, "However service period of 6 month or more is considered as one full year while calculating gratuity, you assume as he has rendered one year service & pay the gratuity as good gesture"...is also not quite right.
The deceased has worked only for a period of 4 months, then where does the supposition of his having worked for 6 months or more, come in.
Yes, as a gesture of goodwill you may decide to pay the nominee of the decased employee Gratuity on the assumption that he worked for a period of one year. Wonder if you would like to set a precedent by doing so??
Factually, you are required to pay to the nominee of the deceased Gratuity ONLY for 4 month's service.
Best Wishes,
Vasant Nair
From India, Mumbai
Your advice is not quite correct. Please read my comments as under:
1. It is incorrect to advise that "you legally not required to pay gratuity as the person under reference has rendered only 4 months service".
In this case, the Company is legally obliged to pay Gratuity to the nominee of the deceased, calculated for 4 months' service.
2. Again, your suggestions that, "However service period of 6 month or more is considered as one full year while calculating gratuity, you assume as he has rendered one year service & pay the gratuity as good gesture"...is also not quite right.
The deceased has worked only for a period of 4 months, then where does the supposition of his having worked for 6 months or more, come in.
Yes, as a gesture of goodwill you may decide to pay the nominee of the decased employee Gratuity on the assumption that he worked for a period of one year. Wonder if you would like to set a precedent by doing so??
Factually, you are required to pay to the nominee of the deceased Gratuity ONLY for 4 month's service.
Best Wishes,
Vasant Nair
From India, Mumbai
Hello Seniors,
In my opinion the definition of entitlement of gratuity is as :
"Gratuity is payable to an employee (nominee – in case of death of
employee) who has rendered continuous services of five years or more on his termination
of employment, superannuation, retirement or resignation. Completion of continuous
service of five years is not necessary where the termination of employment is due to
death of disablement."
If any notification/GO regarding six months service is compulsory please share.
BK Sirohi
From India, Shimla
In my opinion the definition of entitlement of gratuity is as :
"Gratuity is payable to an employee (nominee – in case of death of
employee) who has rendered continuous services of five years or more on his termination
of employment, superannuation, retirement or resignation. Completion of continuous
service of five years is not necessary where the termination of employment is due to
death of disablement."
If any notification/GO regarding six months service is compulsory please share.
BK Sirohi
From India, Shimla
Dear Ramu HR,
As per Gratuity Rules, if he is a permanent employee, he will get gratuity.
If your employer is having LIC's GGCA sceheme, he will get the befit immediately within 5 days of submission of relevant documents.
Small Note on LIC's GGCA:The premium is paid by the employer on behalf of the employee by making a trust. After making the trust deed, you can get registered with LIC and after making the payment of Premium & approval of LIC, you can approach the Income Tax Dept for approval which will be beneficial for your employers on long run as well as of the employees.
Regards.
Ravi
From India, Mumbai
As per Gratuity Rules, if he is a permanent employee, he will get gratuity.
If your employer is having LIC's GGCA sceheme, he will get the befit immediately within 5 days of submission of relevant documents.
Small Note on LIC's GGCA:The premium is paid by the employer on behalf of the employee by making a trust. After making the trust deed, you can get registered with LIC and after making the payment of Premium & approval of LIC, you can approach the Income Tax Dept for approval which will be beneficial for your employers on long run as well as of the employees.
Regards.
Ravi
From India, Mumbai
The humane approach in all the above replies shows something should be done to grant gratuity to the deceased eventhough the employee is not eligible.In respect of pension, minimum pension is granted eventhough the employee does not complete the requisite minimum period of service,which is a benevolent gesture to the deceased.The above discussions drives home this point and everybody will accept that the same methodology should be devised and the gratuity act needs amendment to fix a minimum amount of gratuity to an employee who dies without meeting the minimum service as in the case of pension also.Te cite-man shold initiate action to put the suggestion into reality.
From India, Chennai
From India, Chennai
I appreciate S.D Patil's interpreation of the provisions of the Gartuity Act to determine whether the payment is due to the deceased employee and keshav koregaonkar's inputs on LIC and his suggestion to go for the LIC Scheme so that it can cover circumstances of this nature. however I need one clarification.Mr.kannan says that in this case the employer may not be able to submit claim to LIC since he is not eligible for gratuity under the Act.But technically, the deceased employee is eligibel for recieving gartuity but the gratuity could not be computed uner the Act as the employee rendered less the 6 months of servcie. My question is whether this will render the employee ineligible for gartuity under LIC scheme also,assuming such scheme covers the employee as he is technically eligible for gratuity under the Act.
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law Advsior
Mumbai
From India, Mumbai
Mr.Sirohi It is there in Sub-section(2) of sec.4 of the Payment of Gartuiy Act 1972 and no notification is needed in this regard B.Saikumar HR & labour Law advisor Mumbai
From India, Mumbai
From India, Mumbai
Dear All,
I thank Mr.Saikumar for highlighting the misleading information given by me the employee is ineligible for Gratuity. Upon reviewing the act I observe that in the event of death the qualifying period of 5 years shall not be necessary. Apologies for misleading the forum.
Payment of gratuity.-
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease;
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement :
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to the heirs.
Regards
M.V.KANNAN
From India, Madras
I thank Mr.Saikumar for highlighting the misleading information given by me the employee is ineligible for Gratuity. Upon reviewing the act I observe that in the event of death the qualifying period of 5 years shall not be necessary. Apologies for misleading the forum.
Payment of gratuity.-
(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,-
(a) on his superannuation, or
(b) on his retirement or resignation, or
(c) on his death or disablement due to accident or disease;
Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement :
Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to the heirs.
Regards
M.V.KANNAN
From India, Madras
Dear Kannan ji,
Greetings!
I feel there is no need to tender apology by you. Please remove from your mind that you have misleaded the forum. We all are learning here by sharing our views. We get an opportunity to review and correct ourselves by discussions. No one is cent percent perfect and we can march towards perfection at optimum level by healthy discussion.
I hereby take an opportunity to say here that we all should make our own study before we reply. I am not telling this to you. It is a general statement which is applicable to me also. When we discuss on fact of law, we should be very careful. On question of law we can and we should differ in very polite way.
Looking forward for active participation from you as well by other members.
From India, Mumbai
Greetings!
I feel there is no need to tender apology by you. Please remove from your mind that you have misleaded the forum. We all are learning here by sharing our views. We get an opportunity to review and correct ourselves by discussions. No one is cent percent perfect and we can march towards perfection at optimum level by healthy discussion.
I hereby take an opportunity to say here that we all should make our own study before we reply. I am not telling this to you. It is a general statement which is applicable to me also. When we discuss on fact of law, we should be very careful. On question of law we can and we should differ in very polite way.
Looking forward for active participation from you as well by other members.
From India, Mumbai
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc