Dear Sir/Madam,

I am Anjaneyulu, working as a trainee administrator in a private company. Unfortunately, one of my company's staff passed away due to health problems. He had 28 years of experience. I would like to inquire about the benefits we will provide to his family members.

Thank you.

From India, Korba
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Hi,

The nominee of the deceased person should receive the following minimum benefits:
1) Gratuity payment considering that he would have worked until his retirement.
2) EDLI benefit from the PF office along with PF and pension for his nominee.
3) All his dues such as salary or benefits, whether he was eligible or not paid.
4) Ex-gratia, bonus for the year if not already paid.
5) If there is a group life cover, then the sum insured.
6) What is the reason for the death? Please check.

Regards,

From India, Pune
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Dear friend,

I endorse the answer given by Mr. Vinod Bidwaik. Apart from that, your company may provide compassionate appointment to one of the dependents of the deceased in your company in any suitable job so that the family members of the deceased may have livelihood.

Suri Babu Komakula

From Canada, Calgary
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Dear Vinod,

In reply to Anjaneyulu's query, you have mentioned the following on Gratuity: "1) Gratuity payment considering he would have been worked till his retirement."

As per your above statement, the employee should get gratuity considering he would have worked till his retirement, even if he died before his retirement. To the best of my knowledge, the employee gets gratuity till the last working date, and, therefore, gratuity is not to be considered till the employee's date of retirement.

Could you mention which section of The Payment of Gratuity Act, 1972 says that in case of death, the employee should get Gratuity considering he would have been worked till his retirement?

Regards,
Kuldeep Singh

From India, Vijayawada
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Kuldeep Singh is right. Law does not provide for gratuity until the date of retirement. If the organization has a policy with LIC, then check the terms and conditions of the gratuity deed. Some policies provide for payment until the age of retirement. It is not a legal retirement but an additional facility offered.

On Mr. Suri Babu's suggestion of providing employment on compassionate grounds, let me caution that this is not a good practice, and many companies have struggled hard to move away from such policies in the past. Let us not reinvent the wheel. There are certain hard lessons learned by many organizations over a period of time. New organizations have the advantage of learning from the lessons learned by other organizations.

From India, Chennai
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Dear Anjaneya,

Could you tell us whether yours is a mine or an industry? Are you covered under the ESI Act and the Workmen's Compensation Act? Was he covered under any insurance (Group Insurance or individual)? If your company is a mining company under the Mines Act, did he work below ground or above ground? What was his designation? This information is required to suggest some more areas in addition to what have been indicated by other friends.

Kumar S.

From India, Bangalore
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Mr. Sivasankaran has clarified the position in which gratuity till retirement would be considered, though it is not possible under the Gratuity Act. Further to the list of Vinod, also add encashment of leave, if any remaining unavailed.

B. Saikumar HR & Labour Law Advisor Mumbai

From India, Mumbai
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Compassionate appointment is not a statutory right It is the policy of Company.Gratuity till retirement is also not a right.It is the extended under insurance policy. Varghese Mathew 09961266966
From India, Thiruvananthapuram
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