Understanding Employee Benefits in Case of Compulsory Retirement: Gratuity, Pension, and More

Dear Seniors,

Could you please explain what benefits the employee is entitled to if the "Disciplinary Authority" imposes the punishment of "Compulsory Retirement"?

Thank you.

Dear Friend,

Compulsory retirement is one kind of punishment in which the employer wants to send out the employee from his firm for one reason or another. In such a case, the employee who is to undergo compulsory retirement shall be entitled to receive his salary due for that month, gratuity if he completes 5 years of continuous service, encashment of earned leave, incentives due if any, etc. The bonus will be paid on par with the employees of the organization for those employees who leave the services of the organization due to resignation, retirement, termination, etc.

Regards,
N.V. Rao

Dear Sir,

Thank you for your prompt reply.

My questions are:

1) If he has not completed 5 years, is he entitled to claim gratuity?
2) If he has not completed 10 years of service, is he entitled to claim a pension?

Dear Prashant,

The Gratuity Act states that an employee should complete 5 or more years to be eligible for gratuity. Therefore, if an employee completes 5 or more years of service, they are entitled to gratuity as per the Gratuity Act. For more information regarding the Gratuity Act, please search using the search button.

Regards,
Ruth
Admin & HR Manager