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saiseven
54

Even adding two months of leave (assuming that he availed leave with wages) to his service of 4 years and five months, it totals up to 4 years 7 months (210 days) and thus he is not eligible for gratuity
B.Saikumar
HR & labour Law Consultant
Chipinbiz Consultancy Pvt.ltd
Mumbai
022-28324234

From India, Mumbai
S.P.Chauhan
thanks seniors for your guidance and supports
Actuly in our industry one contract employee has been made permenant on 01.04.2011 and died in Aug-11 in road accident and that is why I keep my quiry before you.

From India, Mumbai
Labour Law Index
180

Under provision 1 to Section 4(1), the provision of continuous service of 5 years shall not be necessary where did termination of employment happened due to death or disablement. In case of death the amount of gratuity be paid to the nominee. If there was no nomination made gratuity shall be paid to the heir. Where the nominee or heir is a minor then the amount of gratuity shall be submitted to the controlling authority. The minor can use this fund when he attains majority.

For Every completed year of service or part there of in excess of 6 months the employer shall pay gratuity to an employee at the rate of 15 days wages based on rate of wages last drawn by the employee concerned.

According to explanation under section 4(2), if the wages is paid monthly then the per day wage for the pupose of calculation of gratuity will be calculated as follows :-

Salary/Wages For Gratuity = Rate of Monthly Wage Last Drawn * 15 /26

In case of employee paid on piece rate basis, daily wages is computed as average of total wages received in a period of 3 months immediately preceding the date of termination. For this purpose, the wages paid for any overtime work shall not be taken into account.

See this for total Payment of Gratuity Act, Rules, Forms, Returns & All Other Information

From India, Kolkata
snrajaryan
9

The pre-requisite of 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 to the extent that the person is literally unable to provide the required services.
Round off the service in excess of 6 months to the next nearest figure and if it is less than 6 months to the earliest figure. i.e, 2.6 years to be trated as 3 years and 2.4 years to be treated as 2 years.
Hope it is clear.
Regards,

From India, Hyderabad
snrajaryan
9

Formula for calculation: Recent drawn basic* no.of years of service * 15/26 Insert values in the above formula for getting the gratuity amount. Regards,
From India, Hyderabad
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