dear sajanssa how did you calculate this 90days i think 15days salary is given for completion of every year please clear me i was wronge
From India, Panipat
2From India, Panipat
Dear Kumaran,
I endorse the views of Mr. KCS Kutty. But to make it more clear, I may point out that although Section 4(1) of the Payment of Gratuity Act provides the requirement of minimum of 5 years of continuous service to have been rendered by the employee for the eligibility for payment of gratuity, BUT, the Proviso below the said Rule clearly provides that the completion of continuous service of five years shall not be necessary in the case of death or disablement.
Further, although Section 4 (2) of the Payment of Gratuity Act provides that 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, BUT, Section 4 (5) clearly provides that "nothing in section 4 shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer."
That means it depends upon the greatness of the employer to pay higher amount of gratuity, but shall not pay less than the minimum amount payable under the Act.
But, please be aware, the Gratuity is payable within a period of 30 days from the date it becomes payable to the eligible person, otherwise simple interest at the prescribed rates would also become payable as per the provisions of Section 7 of the Act.
P S Dhingra
Vigilance & Management Consultant
Dhingra Consultancy Group
New Delhi
From India, Delhi
Thanks for everybody for valuable reply. Our Management willing to pay good amount to the kin of the deceased employee. To avoid any future issue, we want to give the amount both as per law and on compassionate ground. After seen all your replies, when I calculated the amount which we want to compensate to his family is much more than actually he is legally entitled. So, we hope we will have no problem in future.
My thaks to all of you for your valuable reply.
thanks,
shiv kumar
From India, Delhi
My thaks to all of you for your valuable reply.
thanks,
shiv kumar
From India, Delhi
Dear Mr. Shiv,
Generally, continuous service of five years is necessary for the payment of gratuity. But If the termination of the employment of employee is due to death/disablement, the completion of five years' service is not be necessary. The nominne/legal representative of the deceased employee can apply for gratuity amt. The employer shall pay gratuity at the rate of 15 days salary (based on the salary rate last drawn) for every completed year of service in all cases. If service years is 3, then gratuity will be paid for 15x3=45 days. I think u will satisfy with it.
Sanjay Gupta
9871018121
From India, Delhi
Generally, continuous service of five years is necessary for the payment of gratuity. But If the termination of the employment of employee is due to death/disablement, the completion of five years' service is not be necessary. The nominne/legal representative of the deceased employee can apply for gratuity amt. The employer shall pay gratuity at the rate of 15 days salary (based on the salary rate last drawn) for every completed year of service in all cases. If service years is 3, then gratuity will be paid for 15x3=45 days. I think u will satisfy with it.
Sanjay Gupta
9871018121
From India, Delhi
Hi plz see the attachment. i hope this would help you to some extent. best wishes, Jyoti
From India, Delhi
From India, Delhi
As per workmens compensation act' 1923 the worker will only get compensation only if the accident arises "In the course of employment and out of course of employment"
From India, Mumbai
From India, Mumbai
Gratuity is payable in cases of death even if the employee has not completed 5 years of service. Vasant Nair
From India, Mumbai
From India, Mumbai
Hi Shiv,
Ref : W.C.Act
To be eligible for compensation under W.C.Act, death should have occurred in the course of employment. It is immaterial that deceased met with accident on the road, far off from premises of the company. mr Maliks' view is right.
Ref: Gratuity Payment
The nominee/s of the deceased is entitled for gratuity, even if the dceased rendered only 3 years of services. Ofcourse , he will be paid for only three years on pro-rata basis.
I.N.JHA
Ref : W.C.Act
To be eligible for compensation under W.C.Act, death should have occurred in the course of employment. It is immaterial that deceased met with accident on the road, far off from premises of the company. mr Maliks' view is right.
Ref: Gratuity Payment
The nominee/s of the deceased is entitled for gratuity, even if the dceased rendered only 3 years of services. Ofcourse , he will be paid for only three years on pro-rata basis.
I.N.JHA
Hi, if the death occured during the course of employment then the kin of deceased is entitled for compensation under Worksman Compensation Act through the employer and alternatively they are entitled for compensation under Motor Vehicle Act as death ocuured in road accident, through insured and insurance company. You can choose on of the remedies at your liberty.
Prem Prakash (Adv.)
From India, Delhi
Prem Prakash (Adv.)
From India, Delhi
Dear Mr.Shiv Kumar,
Mr. Madhu is 100% correct as I have also paid gratuity to one of my employee in the year 2004, who died due to accident for his two and half years of service. In this case of death the basic criteria of five years eligibility is not taken into account and he is to be paid for the years he has worked in the organisation, in this case he is not entitled for WC as the death has not taken place during the course of his employmentand at the place of his work, therefore,the worker only needs to be paid gratuity on the basis of the formula laid down for the payment of gratuity. I hope this will meet your requirement.
Mahender Singh
9824014044
From India, Vadodara
Mr. Madhu is 100% correct as I have also paid gratuity to one of my employee in the year 2004, who died due to accident for his two and half years of service. In this case of death the basic criteria of five years eligibility is not taken into account and he is to be paid for the years he has worked in the organisation, in this case he is not entitled for WC as the death has not taken place during the course of his employmentand at the place of his work, therefore,the worker only needs to be paid gratuity on the basis of the formula laid down for the payment of gratuity. I hope this will meet your requirement.
Mahender Singh
9824014044
From India, Vadodara
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Compensation for permanent, patial disablement and death of Employee_Ammend ed.xls
Death while in service letter for pf death claim.docx
Published_draft _rules_on Employees_ compensation 3.6.2020.pdf