Dear MR.Krm rao, can a person having 4 yrs and 9 mths service claim gratuity???is it according to the law??? Warm Regards, Divya
From India, Ahmadabad
From India, Ahmadabad
Hi Divia
As per the Madras High Court Judgement if an employee put up a service of 4 years and 240 days of service in a single organisation he is eligible for gratuity benefit. In your case the employee had put up a service of 4 years and approx. 270 days, hence he is eligible to get the benefit of gratuity.
Mohan Rao
Manager HR
From India, Visakhapatnam
22As per the Madras High Court Judgement if an employee put up a service of 4 years and 240 days of service in a single organisation he is eligible for gratuity benefit. In your case the employee had put up a service of 4 years and approx. 270 days, hence he is eligible to get the benefit of gratuity.
Mohan Rao
Manager HR
From India, Visakhapatnam
Hi Sir,
Is this law applicable only in Tamil Nadu??Also i want to know if the gratuity calculation the same in case of a deceased employee????i read this info in another thread,
Gratuity for any death case would be calculated based on below formula(as per Gratuity act):
Gratuity amount= (No. of year service in company + No. of service years left till his age of 58 ) * (15/26*Last drawn basic)
Is this true???
From India, Ahmadabad
Is this law applicable only in Tamil Nadu??Also i want to know if the gratuity calculation the same in case of a deceased employee????i read this info in another thread,
Gratuity for any death case would be calculated based on below formula(as per Gratuity act):
Gratuity amount= (No. of year service in company + No. of service years left till his age of 58 ) * (15/26*Last drawn basic)
Is this true???
From India, Ahmadabad
Hi Divia
Payment of Gratuity Act applicable and same through out India.
For deceased employee the calculation is the same, but the total 5 years of services is not necessary, for example a deceased worked for say 1 year, even then the gratuity has to be paid.
For gratuity payment to a deceased only no of years he served is taken in to account for payment of gratuity not the left out years upto an of 58.
Mohan Rao
Manager HR
From India, Visakhapatnam
Payment of Gratuity Act applicable and same through out India.
For deceased employee the calculation is the same, but the total 5 years of services is not necessary, for example a deceased worked for say 1 year, even then the gratuity has to be paid.
For gratuity payment to a deceased only no of years he served is taken in to account for payment of gratuity not the left out years upto an of 58.
Mohan Rao
Manager HR
From India, Visakhapatnam
Hi,
As per the Payment of Gratuity Act 1972,
(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 his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.]
Explanation. : For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he, was capable of performing before the accident or disease resulting in such disablement.
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned:
Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account.:
Provided further that in the case of [an employee who is employed in a seasonal establishment and who is riot so employed throughout the year], the employer shall pay the gratuity at the rate of seven days wages for each season.
Explanation: In the case of a monthly rated employee, the fifteen days wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.
(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand] rupees.
(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.
(6) Notwithstanding anything contained in sub-section (1), -
(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited] -
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
From India, Delhi
As per the Payment of Gratuity Act 1972,
(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 his heirs, and where any such nominees or heirs is a minor, the share of such minor, shall be deposited with the controlling authority who shall invest the same for the benefit of such minor in such bank or other financial institution, as may be prescribed, until such minor attains majority.]
Explanation. : For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he, was capable of performing before the accident or disease resulting in such disablement.
(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days wages based on the rate of wages last drawn by the employee concerned:
Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account.:
Provided further that in the case of [an employee who is employed in a seasonal establishment and who is riot so employed throughout the year], the employer shall pay the gratuity at the rate of seven days wages for each season.
Explanation: In the case of a monthly rated employee, the fifteen days wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen.
(3) The amount of gratuity payable to an employee shall not exceed three lakhs and fifty thousand] rupees.
(4) For the purpose of computing the gratuity payable to an employee who is employed, after his disablement, on reduced wages, his wages for the period preceding his disablement shall be taken to be the wages received by him during that period, and his wages for the period subsequent to his disablement shall be taken to be the wages as so reduced.
(5) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer.
(6) Notwithstanding anything contained in sub-section (1), -
(a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused.
(b) the gratuity payable to an employee may be wholly or partially forfeited] -
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.
From India, Delhi
Gratuity Casestudy :
Hi all,pls help me with this gratuity of a deceased employee.Rajiv,a 42 yr old works in XYZ Ltd from 17/09/1999.He expires on 31/12/2007.He was drawing a salary (basic+D.A) of Rs.8800.What is the amount of gratuity his nominee would get????
Cheers,
Divya
From India, Ahmadabad
Hi all,pls help me with this gratuity of a deceased employee.Rajiv,a 42 yr old works in XYZ Ltd from 17/09/1999.He expires on 31/12/2007.He was drawing a salary (basic+D.A) of Rs.8800.What is the amount of gratuity his nominee would get????
Cheers,
Divya
From India, Ahmadabad
Hi Divya
The Expired employee had put in service of 8 Years 3 months and 14 days. Hence he would get gratuity benefit for 8 Years only.
The workout would be: Last drawn Basic + DA = 8800 / 26 = 338.46 per day wage X 15 days =5076.90 Per Year Gratuity benefit, for 8 years = 8 X 5076.90 = 40615.20. Total Gratuity.
Hence his nominee would get a total gratuity of Rs.40615.00
Mohan Rao
Manager HR
From India, Visakhapatnam
The Expired employee had put in service of 8 Years 3 months and 14 days. Hence he would get gratuity benefit for 8 Years only.
The workout would be: Last drawn Basic + DA = 8800 / 26 = 338.46 per day wage X 15 days =5076.90 Per Year Gratuity benefit, for 8 years = 8 X 5076.90 = 40615.20. Total Gratuity.
Hence his nominee would get a total gratuity of Rs.40615.00
Mohan Rao
Manager HR
From India, Visakhapatnam
Hi Mr.Krm roa,
Thank you so much.I am really confused about the calculation of gratuity incase of deceased employee.there are so many differents posts on this,and i m confused as to what to believe.In one post i read that if the employer is contributing towards EDLI,then the NO.of Yrs of service remaining till 58 will be taken for gratuity computations in case of deceased,is it true????
Cheers,
Divya
From India, Ahmadabad
Thank you so much.I am really confused about the calculation of gratuity incase of deceased employee.there are so many differents posts on this,and i m confused as to what to believe.In one post i read that if the employer is contributing towards EDLI,then the NO.of Yrs of service remaining till 58 will be taken for gratuity computations in case of deceased,is it true????
Cheers,
Divya
From India, Ahmadabad
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