1. Difference between Premature Retirement and Compulsory Retirement and its effect on retirement benefits 2. Termination from service and its effect on retirement benefits
From India, Faridabad
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From India, Faridabad
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1. Difference between Premature Retirement and Compulsory Retirement and its effect on retirement benefits
Premature retirement and compulsory retirement are the opposites. Premature retirement is when the employee, before reaching the age of superannuation, seeks retirement from service, and compulsory retirement is when the employer decides to retire the person. In both cases, all the normal retirement benefits like full leave encashment, wage revision benefits, etc., are given.
2. Termination from service and its effect on retirement benefits:
Statutory benefits like PF have to be made in all cases of termination of service. Gratuity can be withheld partly or fully in termination of service where the preconditions are met. For leave encashment, different organizations have different rules. In normal retirement cases, all leave benefits like EL/PL/AL & sick leave/Half Pay Leave standing to the credit of the employee on the day of retirement are encashed, but in other cases, Sick leave or HPL are not encashed at all. Where the wage revision happens later than the termination of service but is with retrospective effect, the retired employees are given all the benefits for their period of service. The organization has to lay down its rules properly with regard to such incidents of service, as it varies from organization to organization.
From India, Mumbai
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15931. Difference between Premature Retirement and Compulsory Retirement and its effect on retirement benefits
Premature retirement and compulsory retirement are the opposites. Premature retirement is when the employee, before reaching the age of superannuation, seeks retirement from service, and compulsory retirement is when the employer decides to retire the person. In both cases, all the normal retirement benefits like full leave encashment, wage revision benefits, etc., are given.
2. Termination from service and its effect on retirement benefits:
Statutory benefits like PF have to be made in all cases of termination of service. Gratuity can be withheld partly or fully in termination of service where the preconditions are met. For leave encashment, different organizations have different rules. In normal retirement cases, all leave benefits like EL/PL/AL & sick leave/Half Pay Leave standing to the credit of the employee on the day of retirement are encashed, but in other cases, Sick leave or HPL are not encashed at all. Where the wage revision happens later than the termination of service but is with retrospective effect, the retired employees are given all the benefits for their period of service. The organization has to lay down its rules properly with regard to such incidents of service, as it varies from organization to organization.
From India, Mumbai
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