Gratuity Eligibility for Retired Employees: Does Completing Five Years Count?

I have a problem in my company. When a retired employee completes five years in any organization, are they eligible for gratuity?

Regards,
AJEET SINGH

Why do you have doubt in it? Five years have been completed, so he is eligible. Please refer to various postings on this subject, including mine.

If an employee is terminated after completing 5 years of service due to some reason, are they eligible for gratuity? Please help...

Gratuity Eligibility After Five Years of Service

If any person completes 5 years of service in the organization, they are eligible for gratuity as per the Gratuity Act.

If an employee is terminated after completing 5 years of service, whether they are eligible for gratuity depends on the reason for which their service is terminated. If the person has caused the organization financial loss due to fraud committed by them, the employee may not be eligible for gratuity. For other reasons such as a poor leave record, misconduct, etc., the employee is eligible for the payment of gratuity.

Regards

If an employee completes a period of 5 years of service, they are definitely eligible for gratuity. However, if their services are terminated due to the reasons mentioned in sub-section (6) of Section 4 of the Payment of Gratuity Act, 1972, you may deny them a partial or full amount of gratuity. The condition is that you should follow the proper procedure for the termination of the individual's services. This information has also been explained by my colleague Sh. Ajeet Kumar.

Regards,
BS Kalsi
Member since August 2011

Gratuity Entitlement for Employees Over 58 Years

If an employee completes the age of 58 years and, as per the group gratuity LIC agreement, is entitled to gratuity up to the age of 58 years, but the management continues his service in the company, kindly advise if every completed year after 58 years makes him entitled to gratuity.

While endorsing Ajeetvarma50 and BS Kalsi, I would like to add the following:

Gratuity as a Statutory Right

Gratuity is a statutory right. An opportunity should be given to the employee to be heard as to why his gratuity should not be forfeited.

Case Reference: D.V. Kapoor v. Union of India

In the case of D.V. Kapoor v. Union of India AIR 1990 SUPREME COURT 1923, the appellant was neither charged with nor given an opportunity regarding the withholding of his gratuity as a form of punishment. No provision of law has been cited which empowers the President to withhold gratuity as a punitive measure post-retirement. Hence, it has been determined that the order to withhold gratuity as a penalty is clearly illegal and lacks jurisdiction.

Section 4 (6) (1) of the Gratuity Act

I am also including section 4 (6) (1) verbatim for easy reference:

- (a) The gratuity of an employee, whose services have been terminated due to any act, willful omission, or negligence causing damage or loss to the employer's property, shall be forfeited to the extent of the damage or loss incurred;

- (b) The gratuity payable to an employee shall be entirely forfeited if:
- (i) the employee's services have been terminated due to riotous or disorderly conduct, or any violent act on his part, or
- (ii) the employee's services have been terminated for an act constituting an offense involving moral turpitude, provided such offense was committed during his employment.

Thank you.

Best regards

Under the Payment of Gratuity Act, 1972, "Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service of not less than 5 years, on superannuation, retirement, resignation, death, or disablement due to accident or disease. Continuous service of 5 years shall not be necessary where the termination of the employment is due to death or disablement."

Regards,
Srinivas

Well, the bottom line is that if an employee has completed five years in an organization, then he/she will be eligible for gratuity in all manners, and it also requires proof for that.