Section 19 in Life Insurance Corporation of India Class III and Class IV Employees (Revision of Terms and Conditions of Service) Rules, 1985
19. Gratuity.
(1)(a)A permanent Class III or Class IV employee who has been in continuous service of the Corporation (including service with the insurer) for not less than 15 years (excluding period of probation or temporary service in respect of employees recruited on or after the 1st September, 1956) and -(i)whose services are terminated by the Corporation for any reason whatsoever;OR(ii)who voluntarily resigns from the service of the Corporation;OR(b)a permanent Class III or Class IV employee -(i)who dies while in the service of the Corporation;OR(ii)who retires from the service of the Corporation;OR(iii)whose services are determined either due to continued illness or accident incapacitating him from the proper discharge of his duties;OR(iv)whose services are dispensed with owing to reduction of staff for reorganisation of establishment;shall be eligible for the payment of gratuity.(2)Gratuity admissible to an employee under sub-rule (1) shall be at the rate of one month's terminal basic pay including the portion of special allowance specified in the proviso to sub-rule (3) of rule 4 or sub-rule (2) of rule 6 for each completed year of continuous service (inclusive of regular salaried service with the insurer) in respect of first 15 years and at the rate of half a month's terminal basic pay including the portion of special allowance specified in the proviso to sub-rule (3) of rule 4 and sub-rule (2) of rule 6 for each completed year of further continuous service; so, however, that the total gratuity admissible shall not exceed a maximum of 20 months' terminal basic pay including portion of special allowance specified in the proviso to sub-rule (3) of rule 4 or sub-rule (2) of rule 6. [............deleted] [Notified in Gazette of India dated 11.9.1986. The words and figures Rupees Thirty Six Thousand or whichever is less have been deleted w.e.f. 1.4.1983.]Explanation: For the purpose of computation of gratuity under this sub-rule any period spent by an employee on extra-ordinary leave, exceeding 12 months during the entire period of his service shall be excluded.(3)Gratuity admissible to a Class in or Class IV employee shall be determined in accordance with the provisions of sub-rule (2) or calculated under the Payment of Gratuity Act, 1972 (39 of 1972), whichever is more favourable to him.[Provided that] [Notified in Gazette of India dated 11.9.1986 and came into force w.e.f. 1.4.1983.] -(a)while calculating the gratuity under the said Act, the monthly salary/ of an employee shall be deemed to be his terminal basic pay, dearness allowance, additional dearness allowance and the special allowance as specified in the proviso in sub-rule (3) of rule 4 and sub-rule (3) of rule 6.(b)[ the provisions of the said Act shall apply notwithstanding that monthly salary of an employee calculated in accordance with clause (a) exceeds [(two thousand five hundred rupees)] [Notified in Gazette of India dated 22.8.88 and came into force w.e.f. 1.10.87.](c)in the case of an employee who dies while in service of the Corporation after having completed 15 years of continuous service, the gratuity under the said Act shall be calculated at the rate of one month's salary for every completed year of service.(d)the amount of gratuity calculated under the said Act shall in no case exceed [the maximum prescribed under the said Act] [Notified in Gazette of India dated 30.8.1999 and has come into force w.e.f. 24.5.1994.].(4)Subject to any lien the Corporation may have on the amount of gratuity admissible to an employee, the Corporation shall pay to the employee or to the nominee or nominees of the employees, or if no nomination has been made or is subsisting to the heirs of the employee, the amount of gratuity admissible under this rule,(5)[ Notwithstanding anything contained in sub-rules (1) and (4) -(i)where the penalty of dismissal is imposed on an employee for any act involving violence against the management or other employees or any riotous or disorderly behaviour in or near the place of employment or for an offence involving moral turpitude provided that such offence is committed by him in the course of his employment, the gratuity payable to him shall stand wholly forfeited; and(ii)where the penalty of compulsory retirement, removal from service or dismissal is imposed on an employee for any act involving the Corporation in financial loss, the gratuity payable to him shall stand forfeited to the extent of such loss.]
