An employee has worked in an organisation for only three years and dies as a result of an accident H...........

Industrial Relation and labour law Labour Laws -II

An employee has worked in an organisation for only three years and dies as a result of an accident. He does not fulfill five years of minimum service as eligibility condition for getting gratuity. Which one of the following will apply in his case?

he will not be paid gratuity under this act.

he will be paid gratuity

the act is completely silent with regard to this type of situation

none of the above.

छोटे Courses बड़े Results

Master Labour Laws -II

Prepare through Micro-courses

Try Now

Explanation:

he will be paid gratuity.

Gratuity is given by the employer to his/her employee for the services rendered by him during the period of employment. It is usually paid at the time of retirement but can be paid earlier, provided certain conditions are met.There is a formula using which the amount of gratuity payable is calculated. The formula is based on the 15 days of last drawn salary for each completed year of service or part of thereof in excess of six months. To calculate how much gratuity is payable, the Payment of Gratuity Act, 1972 has divided non-government employees into two categories: a) Employees covered under the Act b) Employees not covered under the Act.