Take a look at the other gratuity rules in India mentioned below:
1. Gratuity Act mandates that employees qualify to receive gratuity payment after completing 5 years of service in a company
2. Employers must pay a gratuity amount to their employees on their superannuation and resignation or retirement.
3. The maximum gratuity payment that an employee can receive is ₹20,00,000. Thus, payments above ₹20,00,000 is a voluntary payment and not forced by law.
- If an Employee Do Not Complete 5 years of Service
In case of an employee's death or disability due to accidents or disease, an employer must pay his/her nominee or legal heir. It is applicable irrespective of his/her years of service in an organisation.
If the nominee is a minor, an Assistant Labour Commissioner will invest gratuity sum in a term deposit in his/her name. It is for the financial benefit of the minor till he/she becomes a major. The official deposits this amount with a nationalised bank, such as the State Bank of India.