Am I Eligible for Gratuity After Working Past Retirement Age in an NGO?

My name is Gnana Prakasam, and I am currently working in an NGO (Private). My service condition states, "The age of retirement shall be 60 years with an extension of up to 5 years based on yearly performance review or as specified in the letter of appointment." I am now 65 years old.

I have been working in this NGO since December 2007 and am set to retire on May 31, 2020, completing 12.5 years of service. I have been in continuous service with periodic letters of renewal/extension appointment. The NGO is registered under the LIC Group Gratuity Scheme. Am I eligible for the grant of gratuity for 12.5 years, or only up to 7 years when I completed 60 years of age? I would be really grateful if you could help me.

You will be entitled to full gratuity for all the years of service, including any extensions granted. Please submit your claim to your company. The company will make the payment through the gratuity fund with LIC. I don't anticipate any issues.

Gratuity Eligibility for Post-Retirement Extension

The post-retirement extension for the next five years should be considered when computing the total years of service. Hence, you are eligible to receive gratuity for 12.5 years when you reach the age of 65.

As your company has taken out a policy under group gratuity insurance with LIC of India, you are entitled to gratuity for a tenure of 12.5 years. This opinion is based on the premise that your company has not settled your gratuity upon reaching the age of 60 and issuing a formal notice of retirement, resulting in the settlement of gratuity. Furthermore, if your company issued another letter appointing you on a contractual basis for one year initially (with a consolidated salary lower than what you were earning just before retirement) and subsequently extended the contract each year until your final year of service, the scenario changes. In such an event, you are still eligible for gratuity for the completion of five years of contractual service, but with continuity of service.

Regards, Panchsen

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P. Senthilkumar
Industrial Relations and Labour Law Consultant