Dear Friends,
Correct me if i am wrong, As per the Gratuity Act 1972 in case of Death-Employee is eligible to get their gratuity amount from the date of joining till expected age of retirement that is 58 years without considering minimum working of 5 years.
For Example-
Joining date of Mr. A - 8-4-2009, Date of birth of Mr. A - 25-6-1958,
Date of Death of Mr. A – 28-7-2009, Last basic salary – 8984/- pm,
My questions:-
1. For how much period Mr. A is eligible for gratuity.
2. How much amount will be paid to Mr. A as a gratuity amount and what will be the calculation.
3. Company has employee gratuity trust with LIC. How the insurance company will pay the amount (in one slot or different slot like one amount for actual working or one for expected working period).
4. If someone has any written article as per the Gratuity act 1972 mentioning that “in case of employee death, employee is eligible to get gratuity from the DOJ to till expected date of retirement i.e 58 yeras”. Please provide me.
From India, Faridabad
1Correct me if i am wrong, As per the Gratuity Act 1972 in case of Death-Employee is eligible to get their gratuity amount from the date of joining till expected age of retirement that is 58 years without considering minimum working of 5 years.
For Example-
Joining date of Mr. A - 8-4-2009, Date of birth of Mr. A - 25-6-1958,
Date of Death of Mr. A – 28-7-2009, Last basic salary – 8984/- pm,
My questions:-
1. For how much period Mr. A is eligible for gratuity.
2. How much amount will be paid to Mr. A as a gratuity amount and what will be the calculation.
3. Company has employee gratuity trust with LIC. How the insurance company will pay the amount (in one slot or different slot like one amount for actual working or one for expected working period).
4. If someone has any written article as per the Gratuity act 1972 mentioning that “in case of employee death, employee is eligible to get gratuity from the DOJ to till expected date of retirement i.e 58 yeras”. Please provide me.
From India, Faridabad
Dear Mr mahindra,
Plz calculate the no of years of total contineous service wil b til he reach 58 yrs. then X 15/26 X(Basic+DA). and maximun amnt is 3.5 lakh and see whethr he was on contineos service..
regards,
Ramnath
From India, Bangalore
Plz calculate the no of years of total contineous service wil b til he reach 58 yrs. then X 15/26 X(Basic+DA). and maximun amnt is 3.5 lakh and see whethr he was on contineos service..
regards,
Ramnath
From India, Bangalore
Hi,
1. In case of death or disablement there is no minimum eligibility period.
2. 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
3. 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
4. The nominee / legal heir will get the maximum ceiling of Rs.3,50,000/-
4. In normal cases only, the formulae will be taken for consideration.
Regards
Bhuvana.AL
From India, Madras
1. In case of death or disablement there is no minimum eligibility period.
2. 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
3. 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
4. The nominee / legal heir will get the maximum ceiling of Rs.3,50,000/-
4. In normal cases only, the formulae will be taken for consideration.
Regards
Bhuvana.AL
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From India, Madras
Dear Bhuvana . AL It means his nominee is eligible to get Rs. 3,50,000/- without considering any formula or without considering expected age (58 yrs) of retirement.
From India, Faridabad
From India, Faridabad
As submitted by R N Khola, there is no provision in the Payment of Gratuity Act which says that in case of death, legal representatives of the deceased employee will get Rs 350000 or gratuity worked out upto his attaining the age of 58.
There is no relevance to age or age of superannuation under the Gratuity Act. It has only relevance to date of joining and continuous service. In Mahendra Singh's example, my strong view is that the deceased employee is NOT Eligible for any Gratuity because, gratuity is worked out on the basis of service and service is counted in years only. That means, there is no fraction of year but a fraction of year exceeding six months will be taken as one year and that less than six months will be ignored. It is said in the law that in the death cases no reference is to be made as to whether the deceased employee had worked for five years or not. Therefore, nominee of an employee who dies after 3 years is also eligible for gratuity. But what about an employee who dies after less than six months of service? Should he be paid one year gratuity or should this less than six months be ignored?
The Payment of Gratuity Rules suggests that the employer should obtain nomination forms (form F) from the employees who have completed ONE YEAR of service with him. That means the employer is not suppose to collect the nominations before one year of service. If the employer was to pay gratuity even before that, say three months of joining, why didn't the Payment of Gratuity Rules say that the employer should collect the nomination form at the time of joining itself???
I shall be glad if others could also share ideas on it. I am not sure whether I forgot to go in detail about any case study in this respect.
Regards,
Madhu.T.K
From India, Kannur
There is no relevance to age or age of superannuation under the Gratuity Act. It has only relevance to date of joining and continuous service. In Mahendra Singh's example, my strong view is that the deceased employee is NOT Eligible for any Gratuity because, gratuity is worked out on the basis of service and service is counted in years only. That means, there is no fraction of year but a fraction of year exceeding six months will be taken as one year and that less than six months will be ignored. It is said in the law that in the death cases no reference is to be made as to whether the deceased employee had worked for five years or not. Therefore, nominee of an employee who dies after 3 years is also eligible for gratuity. But what about an employee who dies after less than six months of service? Should he be paid one year gratuity or should this less than six months be ignored?
The Payment of Gratuity Rules suggests that the employer should obtain nomination forms (form F) from the employees who have completed ONE YEAR of service with him. That means the employer is not suppose to collect the nominations before one year of service. If the employer was to pay gratuity even before that, say three months of joining, why didn't the Payment of Gratuity Rules say that the employer should collect the nomination form at the time of joining itself???
I shall be glad if others could also share ideas on it. I am not sure whether I forgot to go in detail about any case study in this respect.
Regards,
Madhu.T.K
From India, Kannur
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