Is Our Employee Eligible for Gratuity After Taking VRS from the Indian Navy?

One of our employees took VRS in the Indian Navy and joined in 2005. His date of birth is 10/2/1947. He served until 31/3/14. Is he eligible for gratuity? As per our company policy, the retirement age is 60 years.

Gratuity Eligibility and Retirement Age in the Indian Navy

Are you an HR person in the Indian Navy? In what way is gratuity eligibility linked to retirement age? If an employee is in continuous service for 5 years, he is entitled to gratuity.

Regards,
Pon

Understanding Gratuity Eligibility

Please refer to the Payment of Gratuity Act for a comprehensive understanding of the act. As per the act, an employee is eligible to receive gratuity only if they are separated from the organization. Prior to separation, the employee must have been in continuous service with the same organization for not less than 5 years. Therefore, the criteria of retirement or otherwise is immaterial. The completion of 5 years and separation thereafter is essential.

I trust you will find the information provided above helpful.

Regards,
Sidhesh Bandodkar.

The concerned employee has served for more than 5 years on a continuous basis, and as such, he is eligible for Gratuity under the Gratuity Act. The payment of Gratuity is in no way connected with the retirement age. I am in agreement with the views given by other colleagues in this regard.

Regards,
Sibabrata Majumdar
Management Consultant - Legal & HR
Kolkata, Mb: [Phone Number Removed For Privacy Reasons]

The question raised by you is of an elementary nature. I wish you could go through the Payment of Gratuity Act. Even now, it is not too late; this will help you in the long run.

Regards,
S.K. Johri

Apart from what seniors have advised you regarding gratuity, I could not understand your query. You say that as per company policy, the retirement age is 60 years, so the employee is supposed to retire in February 2007 as his DOB is 10/2/1947. However, you mention that the employee had served your company until 31/3/14, which is yet to come. According to the calculation, he has worked more than 7 years after his retirement age, i.e., 67 years.