Gratuity Eligibility: Can Employees Hired After 58 Receive It After 5 Years?

Dear Seniors, please confirm whether an employee, appointed after 58 years, is eligible for gratuity after completing 5 years of service.

With warm regards,
Mohan Kumar

Clarification on Gratuity Eligibility for Employees Appointed After 58 Years

Under Sec. 2 (e) of the Gratuity Act, 'employee' means any person (other than an apprentice) employed on wages irrespective of status and salary. In that case, what about an employee appointed after 58 years and served for more than 5 years? Or please clarify, is it legally correct to appoint an employee after 58 years of age?

Kindly clarify.

With Regards,
Mohan Kumar

There is nothing to prevent appointing anybody after 58 years of age. If the person works for more than 5 years, they should be eligible for gratuity.

Yes, the employee will be eligible for gratuity as long as he is employed with the company.

Thank you.

There is no issue related to employment with the age of anyone on or after attending 58 years. If an organization employs anyone as a regular employee who has already reached 58 years and that employee works there for 5 years or more, such an employee will also be entitled to Gratuity. This is clear in the Gratuity Act in Sec. 2(e), which was also mentioned by you.

Hope this will help you.

Regards,