Dear All,
Could you please help me with the following points:
1. How to calculate gratuity in case of death?
2. How is service calculated? Do we need to consider casual leave and loss pay?
3. In the case of an accident, if a person has completed 5 years and taken 3 months of leave, is he eligible for gratuity?
Regards,
Sriram
From India, Madras
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2Could you please help me with the following points:
1. How to calculate gratuity in case of death?
2. How is service calculated? Do we need to consider casual leave and loss pay?
3. In the case of an accident, if a person has completed 5 years and taken 3 months of leave, is he eligible for gratuity?
Regards,
Sriram
From India, Madras
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Hi,
As per the act, the completion of continuous service of five years shall not be necessary where the termination of employment of any employee is due to death or disablement. Service needs to be calculated by considering the retirement age as per the appointment letter.
From India, Chennai
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As per the act, the completion of continuous service of five years shall not be necessary where the termination of employment of any employee is due to death or disablement. Service needs to be calculated by considering the retirement age as per the appointment letter.
From India, Chennai
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Gratuity is payable to the employee due to death based on the number of years he or she has worked. For example, if an employee worked for 5 years + 240 days, then that employee is eligible for Gratuity for 6 years. Gratuity is calculated based on Basic+DA / 26 days x 15 days = One year gratuity amount x the number of years. Even if an employee died while in service before the completion of 5 years also, Gratuity is to be paid based on the number of years the employee worked. For instance, for one year of service = Basic+DA/26 days * 15 days = 1 year x 1 year (or) the number of years worked. No way this relates to the full 'retirement age'. In the case of the death of an employee, Gratuity needs to be paid even for only one year of service or the number of years the employee worked. Senior's views please.
Sundararaman
From India, Madras
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Sundararaman
From India, Madras
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Hi,
I appreciate the views of Pragna and Sundararaman on the payment of gratuity and agree with their views. In the case of death while in service, the time limit for the eligibility clause of 5 years is not applicable. The benefit is paid to the dependants for a full term as it is done in the case of a retiring employee as per the terms and conditions of employment on the retiring age.
For the past service, if any, it is calculated on an actual basis and the rest on an assumed basis as if he is on continuous service.
From India, Hyderabad
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I appreciate the views of Pragna and Sundararaman on the payment of gratuity and agree with their views. In the case of death while in service, the time limit for the eligibility clause of 5 years is not applicable. The benefit is paid to the dependants for a full term as it is done in the case of a retiring employee as per the terms and conditions of employment on the retiring age.
For the past service, if any, it is calculated on an actual basis and the rest on an assumed basis as if he is on continuous service.
From India, Hyderabad
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Dear,
This has been answered in detail in previous posts. Please go through the originally noted links.
CL and LOP (Leave on Loss of Pay) are both counted towards the service. CL and LOP, when availed with proper approval, do not constitute a break in service nor indicate indiscipline.
PL/Medical leave for accidents, with proper approval, can be deducted from the leave balance. Even if there is insufficient PL/ML or Sick leave in the leave account, LOP or Leave without pay can be granted without resulting in a break in service.
Kumar.s.
From India, Bangalore
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This has been answered in detail in previous posts. Please go through the originally noted links.
CL and LOP (Leave on Loss of Pay) are both counted towards the service. CL and LOP, when availed with proper approval, do not constitute a break in service nor indicate indiscipline.
PL/Medical leave for accidents, with proper approval, can be deducted from the leave balance. Even if there is insufficient PL/ML or Sick leave in the leave account, LOP or Leave without pay can be granted without resulting in a break in service.
Kumar.s.
From India, Bangalore
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Gratuity calculation: In case of death gratuity to be calculated based on the no. of years served by the deceased employee. It is not as per Ms Pragna views. Satish
From India, Bangalore
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From India, Bangalore
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Dear Sir/Madam,
Can you please tell our members where it is written? Or is there any case law/notification?
Thanks and regards,
Keshav Korgaonkar
Shantadurgaent.com, Insurance Advisors, Corporate Advisors, Legal Advice, Wage and Salary, Shantadurgaent.com, Labour Compliance Audit, SSI Registration, NOC from
From India, Mumbai
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Can you please tell our members where it is written? Or is there any case law/notification?
Thanks and regards,
Keshav Korgaonkar
Shantadurgaent.com, Insurance Advisors, Corporate Advisors, Legal Advice, Wage and Salary, Shantadurgaent.com, Labour Compliance Audit, SSI Registration, NOC from
From India, Mumbai
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Gratuity calculation.doc
Gratuity Calculation tool.xls