Hi,
My View –
As stated by other members, Employer should take the responsibility at least by ensuring the complete benefits provided to the family members of the deceased employee whether it is a top executive or entry level individual as per the act.
Coming to the employees compensation act, In this case employer is liable to pay the compensation. I have attached the employees Compensation calculator for calculating compensation in case of death, Permanent Total Disablement, Permanent Partial Disablement. I have picked up this from the earlier posting and I believe this would be useful.
Below all should be taken care and need to settle to the family members:
1) As per Employee’s compensation act. I believe
2) Gratuity – Monthly Basic * 15/26 * no. of. Year Services due ( Example: if the person age is 30 and the retirement age is 58 then we should
take 28 years for the calculation)
3) Leave encashment
4) Provident Fund – By working with the department
5) All salary dues etc..
Thanks and Regards
Srinivas Marnade
From India, Hyderabad
5My View –
As stated by other members, Employer should take the responsibility at least by ensuring the complete benefits provided to the family members of the deceased employee whether it is a top executive or entry level individual as per the act.
Coming to the employees compensation act, In this case employer is liable to pay the compensation. I have attached the employees Compensation calculator for calculating compensation in case of death, Permanent Total Disablement, Permanent Partial Disablement. I have picked up this from the earlier posting and I believe this would be useful.
Below all should be taken care and need to settle to the family members:
1) As per Employee’s compensation act. I believe
2) Gratuity – Monthly Basic * 15/26 * no. of. Year Services due ( Example: if the person age is 30 and the retirement age is 58 then we should
take 28 years for the calculation)
3) Leave encashment
4) Provident Fund – By working with the department
5) All salary dues etc..
Thanks and Regards
Srinivas Marnade
From India, Hyderabad
Mr Srinivas, Your above calculation of gratuity is not correct as per POG Act. Varghese Mathew 09961266966
From India, Thiruvananthapuram
From India, Thiruvananthapuram
Dear Varghese Mathew
Thanks for the note and correcting my response, could you please share the correct calculation which would be helpful.
We have paid to one of our deceased employee as per the calculations provided. The calculation was confirmed by our consultant hence I thought it is the right way of calculating.
Thanks and Regards
Srinivas
From India, Hyderabad
Thanks for the note and correcting my response, could you please share the correct calculation which would be helpful.
We have paid to one of our deceased employee as per the calculations provided. The calculation was confirmed by our consultant hence I thought it is the right way of calculating.
Thanks and Regards
Srinivas
From India, Hyderabad
Dear Srinivas.
As per your calculation a person with 30 years of service with 2 more years to retire will get less amount than a person with 5 years service and 30 more years to retire.
Multiplication is to be by the No of years of completed service.Not by the years due for retirement
Eg In the case of a person with salary of Rs 20000/pm and completed service of 30 years the gratuity amount will be
20000/26*15*30=34615/-
Note that the age of employee has no relevance.But in the case of LIC's group gratuity policy they ,in the case of death cases,gratuity for the remaining service also in addition to the amount payable as per the Act.
VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
As per your calculation a person with 30 years of service with 2 more years to retire will get less amount than a person with 5 years service and 30 more years to retire.
Multiplication is to be by the No of years of completed service.Not by the years due for retirement
Eg In the case of a person with salary of Rs 20000/pm and completed service of 30 years the gratuity amount will be
20000/26*15*30=34615/-
Note that the age of employee has no relevance.But in the case of LIC's group gratuity policy they ,in the case of death cases,gratuity for the remaining service also in addition to the amount payable as per the Act.
VARGHESE MATHEW
9961266966
From India, Thiruvananthapuram
Dear Mr. Verghese
I agree with both of your comments.
However, I think their company may be using the formula of - no. of years completed or no. of years of service left; whichever is HIGHER. (In case of death in the course of employment).
In such a case, it would be legal as the employee gets MORE than that stipulated in the POGA 1972; and it should be appreciated if indeed it is the case; as there are very few good companies who give more benefits than the MINIMUM as stipulated in any Act.
Warm regards.
From India, Delhi
I agree with both of your comments.
However, I think their company may be using the formula of - no. of years completed or no. of years of service left; whichever is HIGHER. (In case of death in the course of employment).
In such a case, it would be legal as the employee gets MORE than that stipulated in the POGA 1972; and it should be appreciated if indeed it is the case; as there are very few good companies who give more benefits than the MINIMUM as stipulated in any Act.
Warm regards.
From India, Delhi
Dear Rajkumarji,
I agree with your suggestions. However I have a doubt.
Is there any provision in the Payment of Gratuity Act 1972 to pay Gratuity for the period of service left ?
Regarding better terms of gratuity
Section 4(5) reads as " Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer"
Hence employer can give more gratuity than what is prescribed in the Act.
From India, Madras
I agree with your suggestions. However I have a doubt.
Is there any provision in the Payment of Gratuity Act 1972 to pay Gratuity for the period of service left ?
Regarding better terms of gratuity
Section 4(5) reads as " Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer"
Hence employer can give more gratuity than what is prescribed in the Act.
From India, Madras
Please refer to Section 2(dd) point no (ii) and sub point (d) a person recruited for work abroad by a company which is registered in India is / his legal heirs are eligible to get compensation.
From India, Mumbai
From India, Mumbai
Dear Moderators,
I guess Mr. Xaviers must have either solved his problem or is not interested in the valuable inputs offered by our esteemed colleagues. So you should take a call and declare this topic as closed.
No point in providing input when their is no acknowledgement of the same.
From India, Mumbai
I guess Mr. Xaviers must have either solved his problem or is not interested in the valuable inputs offered by our esteemed colleagues. So you should take a call and declare this topic as closed.
No point in providing input when their is no acknowledgement of the same.
From India, Mumbai
I agree with your views. He could have used this opportunity to compensate the family of the deceased employee adequately, instead of referring to legal provisions. By this kind of action, the loyalty, emotional attachment and feeling of belongingness of other employees could have been enhanced.
From India, Madras
From India, Madras
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