Grant of Gratuity and retirement age - have been in continuous service with periodic letters of renewal/extension appointment

gnana-prakasam
My name is Gnana Prakasam, and I am currently working in an NGO (Private). My service condition says, `The age of retirement shall be 60 years with extension 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 to retire on May 31, 2020 (12.5 years). I have been in continuous service with periodic letters of renewal/extension appointment. The NGO is registered under LIC Group Gratuity Scheme. Am I eligible for grant of gratuity for 12.5 years or only upto 7 years when I completed 60 years of age? I would be really grateful if you can help me.
nathrao
You will be entitled for full gratuity for all the years of service,including extensions granted.
Submit your claim to your company, The company will pay through the gratuity fund with LIC.
I dont think there should be any problem.
panchsen
The post retirement extension for next five years should be reckoned for computing the totals years of service and hence you are eligible to get gratuity for 12.5 years when you completed 65 years age

As your company has taken out a policy under group gratuity insurance with LIC of india .you are bound to get gratuity for a tenure of 12.5 years , Thsi opinion is given on a premise that your company has not settled your gratuity on completion of age of 60 years and issued a formal notice of retirement with resultant settlement of gratuity and further issued yet another letter appointing you on contractual basis for one year to start with ( with consolidated salary lesser than what you were earning just before retirement) and subsequent letters of extension of contractual employment for one year each time till your last year of stint . In sch an event the scenario is different and still you are eligible for gratuity for 5 years completion of contractual service but with continuity of service

Panchsen

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P.Senthilkumar

Industrial Relations and Labour Law consultant
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