Dear All,

If an employee, who had completed only 1 year and 8 months of service, passes away, does the employer have to pay gratuity to the nominee?

Employee Date of Joining: 01/01/2012
Date of Death: 10/08/2013

If yes, how should the calculation be done? If no, please provide the reason.

Kindly do the needful.

From India, Bangalore
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Yes, the employer is statutorily liable to pay Gratuity. The calculation is given below:

Gratuity computation: Last Basic + DA x length of service (2 years) x 15/26

Hope you got the answer to your query.

Regards,
SS NEGI

From India, Delhi
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Dear Mr.Nsatender, Any document proof can i get regarding gratuity payable in case of death within 2 yesrs of service. kindly do the needful.
From India, Bangalore
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jkct15
187

Hi,

I don't think the employer has to pay gratuity for an employee's demise. Gratuity is paid only to employees who have worked for more than 5 years, but there is provision for disablement. The law states:

4. 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 the 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 nominee or heir 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.]

Let's wait for more comments on this...


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