Gratuity payments to retired employee from govt. Sector - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Kritya Nand Jha
Dy. Mgr.(hrd)

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Dear Sir,
One person has worked in a Govt. banking Sector till his retirement age of 60 years where is he got Rs.300000/ for Gratuity amount .Now after retirement he joined a public limited company under shops & establishment act ,Haryana with a fixed term employee as a DGM-Banking , where he worked for more than 5 years with extended service in three times and he resigned at the age of 67 yrs. .
There is no standing order passed by any authority ,as per our recruiting policy, Normal retirement age is 58 years and as per Gratuity trust account opened age limit is also 58 years .Now please let me know whether this person is eligible to get Gratuity amount from our company ?? If yes then how much??
Thanks & Regards,
knjha ,HR dept.

Dear Mr. Jha,
Any Fixed Term Contract of employment is not different from a regular contract of employment in terms of statutory conditions of service subject to the parameters of limits of salary/wages, length of service, capacity of employment of the employee concerned as prescribed under the respective Labor and Employment Law applicable to the establishment.
Coming to the case narrated, when the age limit for retirement fixed under your Organization's Gratuity Trust is 58 years, you have recruited an employee when he was already over and above the age of 58 years on FTC basis and extended it from time to time so that he was on continuous service for more than 5 years. In short it is a clear cut exempted case of appointment from the normal pattern of employment followed in your organization. Therefore, payment of gratuity to such employee becomes a distinct as well as the special liability of the organization only. As such, payment of gratuity by his previous employer and the age limit prescribed under the Gratuity Trust are issues not germane to the present claim of gratuity of the FTC employee. Hence the individual is entitled to gratuity under the P.G Act,1972.

Thanks sir for your this update.
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