Dear All, One of our employee will be retired on 10/01/2020. Company has decided to extend his services for next two years i.e. 11/01/2020 to 10/01/2022 by giving him a extension letter. He has been served for last seven years.
Now my query is ....whether he will be eligible for gratuity for nine years ( on 10/01/2022), if we do not pay him on day of retirement or we can give him gratuity for seven years on 10/01/2022.
Appreciate your early advise.
From India, Visnagar
8Now my query is ....whether he will be eligible for gratuity for nine years ( on 10/01/2022), if we do not pay him on day of retirement or we can give him gratuity for seven years on 10/01/2022.
Appreciate your early advise.
From India, Visnagar
Dear
You have two option for that employee. first you must retirement on dated after you must pay legal compliance pay for last seven year after you must that employee hired on retainer ship basis . you must deduction only Income Tax.
Second options you must carry on all term & condition same as per appointment letter .
Only that employee carry out only pf deduction not eligible for the pension part deposited in ecr
From India, Mumbai
You have two option for that employee. first you must retirement on dated after you must pay legal compliance pay for last seven year after you must that employee hired on retainer ship basis . you must deduction only Income Tax.
Second options you must carry on all term & condition same as per appointment letter .
Only that employee carry out only pf deduction not eligible for the pension part deposited in ecr
From India, Mumbai
Dear Vyas,
Extension of service of an employee beyond the age of superannuation means continuity of the contract of employment and therefore the extended period may also be taken into account for calculation of terminal benefits like gratuity. If you permit him to retire on the exact date of superannuation, you have to pay him all the terminal benefits forthwith. The engagement of the services of the employee post retirement is something different from extension of service. Hiring of the services of the superannuated employee later on retainership basis depends upon the position he held in the organization before. If he was in some managerial position, he can be taken as a management consultant on retainership basis. Had he been in the lower rung like an operator or driver, you can take him on fixed contract basis.
From India, Salem
Extension of service of an employee beyond the age of superannuation means continuity of the contract of employment and therefore the extended period may also be taken into account for calculation of terminal benefits like gratuity. If you permit him to retire on the exact date of superannuation, you have to pay him all the terminal benefits forthwith. The engagement of the services of the employee post retirement is something different from extension of service. Hiring of the services of the superannuated employee later on retainership basis depends upon the position he held in the organization before. If he was in some managerial position, he can be taken as a management consultant on retainership basis. Had he been in the lower rung like an operator or driver, you can take him on fixed contract basis.
From India, Salem
Going by the details provided by Vyas, it's well construed as 'continuous service' as there is NO break-in-service intended by the management. Therefore you should consider payment of gratuity only when he may be stopped from service. However if the management decides to 'break' the continuity of service and re-employ him on whatsoever the terms could be then you should pay the gratuity upto the 'break'. There is difficulties.
From India, Bangalore
From India, Bangalore
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Minimum Qualifying service for Gratuity under the Payment of Gratuity Act.docx