Gratuity payment
Ramesh Kumar Pandey
(Querist) 10 December 2013
This query is : Resolved
Dear sir,
My Father has work in renowned company and retire in 1994 with all perks including gratuity, after that the company re-appoint my father again and Pay all the salary as usual with ESI P.F. Deduction but recently the company want to release my father but denied to give him any gratuity & other perks can my father eligible for the same .
Kumar Doab
(Expert) 10 December 2013
If your father was re-appointed without any interruption in service record he may be eligible for Payment of Gratuity for period of service after rejoining. He has already been paid Gratuity for period of service before rejoining.
If your father was appointed with interruption in service record then he may be eligible for Payment of Gratuity if he has been in service (after rejoining) for 4 years and 190/240 days in 5th year( depending upon if the establishment works 5/6 days in a week).
The employer has the discretion to pay gratuity by his sweet will even if employee is not eligible.
If the employee has collected the Payment of Gratuity up to Tax Free ceiling of Rs.10 Lacs then the amounts paid above this amount may be subjected to tax Treatment.
