Gratuity for pvt ltd less than 10 staff

Establishment to which this Act has become applicable shall continue to be governed by this Act.

It is your duty to confirm if ever the Act was applicable to your establishment.

In any case it is 15days wages/year @ last drawn Basic+DA and it should not be much amount.

The employee has passed away and his family bwill look at employer.

Yuo can set an example by paying by your sweet will.

 

How did the employee pass away?

 

Many thanks for your reply. We are under shops establishment, till date, staff have never ever exceed 6. So I am sure we are not under the Act.    

I just want to verify that even if not under the Act, we are not liable for other reason.

Back to the staff, he is loyal, has been with me for 11yrs. I have no problem paying the gratuity. His departure was a big shock to me in particular. He commited suicide over his wife infidelity, now the wife is asking for his gratuity.He wrote in his will that the wife shall have none of his money. But due to some reason, it was not file with the police. 

Irregardless of what happen, I need to strictly follow the law. My stand is if I am not required by law to give the gratuity. I shall prepare a trust on the amount for his 2 school going children instead.

"Establishment to which this Act has become applicable shall continue to be governed by this Act.

It is your duty to confirm if ever the Act was applicable to your establishment."

 

Employer can provide better provisions as provided in the Act, by his sweet will.

It is also enshrined in the Act.

 

You have posted that;

' it had never exceed 6 staff for past 10 years.........................................Back to the staff, he is loyal, has been with me for 11yrs.'

 

Determine exact/correct number of years.

 

Did he ever sign nomination form for Gratuity?

Is the WILL made known to you?

 

'I shall prepare a trust on the amount for his 2 school going children instead.'

Appreciated.

You can help set trust for his children.

 

Sorry my bad. The staff join me when I started the company 10yrs back. So from the day I started, we have max 6 staff. So there is no question were we ever applicable in the Act. I understand that if we ever exceed 10 staff the Act is in force even if we downsize later I have never given any nominations form for gratuity for any of my staff once. Will was make known when my staff went down for his funeral. That's how they understand the whole story. But as he has some life insurance, suicide will void it. So his brother who is a policeman, make it as heart attack incident to claim. Rest I should not mention further. So the issue now is am i required by law to pay the gratuity to the wife? Else I will proceed with the trust for the kids if there is no legal binding obligation . But not payout for both mother and kid together.

Sorry my bad. The staff join me when I started the company 10yrs back. So from the day I started, we have max 6 staff. So there is no question were we ever applicable in the Act. I understand that if we ever exceed 10 staff the Act is in force even if we downsize later I have never given any nominations form for gratuity for any of my staff once. Will was make known when my staff went down for his funeral. That's how they understand the whole story. But as he has some life insurance, suicide will void it. So his brother who is a policeman, make it as heart attack incident to claim. Rest I should not mention further. So the issue now is am i required by law to pay the gratuity to the wife? Else I will proceed with the trust for the kids if there is no legal binding obligation . But not payout for both mother and kid together.

My posts are in response to your statement:

'I shall prepare a trust on the amount for his 2 school going children instead.'

 

Suicide may not necessarily make the claim in life insurance policy void.

 

""Establishment to which this Act has become applicable shall continue to be governed by this Act."

You may check with ALC/DLC (Authority under the Payment of Gratuity Act) for application 10 years back.

If the establishment is covered then since no nomination was signed, legal hiers can stake claim and WILL may be place before the authority.