27 January 2021
To The experts The Payment of Gratuity Act 1972 inter alia states: Payment of Gratuity.- Sec 4 (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,- (a) on his superannuation, or (b) on his retirement or resignation, (c) on his death or disablement due to accident or disease: .
1st query is what is the legal difference between superannuation(a) and retirement(b)?
2nd query is : If a person removed/terminated by the decision taken in board meeting from his service (on the ground of his physical incapacities due to over age(87 years, he join this company at the age of 70 years)) can the person be eligible for claim gratuity? Is his termination by the order of the Board fall under head of (a) Superannuation or (b) retirement, resignation? Regards Abhijit
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As per my opinion person shall not be eligible for getting benefits under the Gratuity act. In your case, it is termination from services. For more help, you can post the employment agreement so that further advice can be given.