Provident Fund and Gratuity

Gurumourthi (Querist) 13 August 2008 This query is : Resolved
In our company as per the order the retirement age is 58 years. If the employee is given extension for another 2 years say upto 60 years, then whether he can continue as member of Provident Fund (payable both employee and employer contribution) and Gratuity.

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Guest (Expert) 14 August 2008
Usually no, but it depends on the terms and conditions of the re appointment. Whether Honarory with consolidated pay or any other contract.

Gurumourthi (Querist) 14 August 2008
Thanks for the response. However could you pls. clarify about the terms and conditions of the re-appointment ?

Murali Krishna (Expert) 14 August 2008
Yes, he can continue as a member of PF. Please refer to Sec 2(f) Employees PF Act which defnies employee. The services of the person whose services were extended falls under this definition and hence he can continue as a member of PF.

Gurumourthi (Querist) 19 August 2008
Thanks for the response. would you pls. clarify about his status under Payment of Gratuity Act.

H. S. Thukral (Expert) 22 August 2008
Extension of service on same terms and conditions gives continuity to the employment and the employee shall be entitiled to all benifits of service. However once the employee retires and he is reinducted into service under a separate contract, he will be governed by the same.

Gurumourthi (Querist) 23 August 2008
Thanks for the response. I agree it is governed by the terms of new appointment order. However my query is the position of law/act under the given circumstance.