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shweta khandelwal (SENIOR EXECUTIVE )     16 January 2014

Gratuity to be paid after retirement age of the institute

Sir,One person has worked in  a govt organisation till his retirement age of 60 yrs where is he got Rs.300000 for grauity.Now after retirement he joined a trust office (Educational) as secretary where he worked for 17 years till age of 77 yrs. In this trust office Normal retirement age for others is 62 years. Now plz let me know whether this person is eligible to get gratuity amount from trust office?? If yes then how much??



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 5 Replies

Suri.Sravan Kumar (senior)     16 January 2014

This type of query is already answered by the experts in this forum. Pl check it

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     16 January 2014

For Provident Fund there is no retirement age and therefore,  can put the entire 12% of employer's share to the provident fund account along with employee's share of 12% without bifurcating it as 8.33% to Pension Fund and the remaining 3.67% in Provident Fund.

Regarding payment of Gratuity, if gratuity is not paid at the time of retirement,  can add on the service to the continuing service. In such case, whenever he leaves and gratuity becomes due the service will be counted from his initial day of service.

In practical companies make employees retire at the age of superannuation fixed, ie, in your case 58 and settle their gratuity and thereafter issue fresh appointment order on fixed term contract basis renewable every year.

Isaac Gabriel (Advocate)     16 January 2014

Gratuity should be paid for the service period, irrespective of the fact whether the service is before or after  retirement.In this case he is eligible for the full service  period of 17 years based on the last drawn salary.

T. Kalaiselvan, Advocate (Advocate)     16 January 2014

You were not the regular employee of the trust, because the trust norms say that the retirement age of employee is 62 years, so your post as secretary should be an adhoc post which do not cover the general benefits which are available to the regular employees. Even the salary structure would have been a consolidated one without any deductions towards PF or any other amenities(?)  So, if your employment is on a contractual basis renewable at the end of a fixed time, there are less chances for gratuity, what is the trust opining about the same on your application for it?

Kumar Doab (FIN)     16 January 2014

If he has been employed as ‘Employee’ he should succeed to get his Gratuity.

If employer has not issued ‘Notice of Determination of Gratuity’ he may demand it and submit FormI under proper acknowledgment.

>> You have posted that:

One person has worked in  a govt organisation till his retirement age of 60 yrs

In this trust office Normal retirement age for others is 62 years.

As far as our understanding is depending upon if he retired from govt. service the only impact might be on PF and after he attained 62 years of age his entire PF contribution would be transferred to EPF without any bifurcation to EPS.

He should be eligible for ESIC (depending upon wage ceiling Rs.15000/pm that has however been put up as Rs.25000/pm at ESIC website), Bonus ( If covered by provisions of Payment of Bonus Act), Gratuity.................

 

>> If he was retained as ‘Consultant/Retainer’ on professional Fees/honorarium, the Trust might be denying due to this nomenclature and reason.

The amount paid to him in return for his services might  be taken as salary/wages whether it is termed professional Fees/honorarium.

If the consultant is full time and worked LIKE AN EMPLOYEE, he may have his chances.

You may go thru:

https://www.lawyersclubindia.com/forum/Employees-on-retainer-ship-consultants-eligible-for-gratuity-68331.asp#.UtPzF9IW1MA


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