Above 58 years old, rejoining - is he eligible or non-eligible for receiving a gratuity under the shop and Establishment act?

Dear Sir,

Under the Shop and Establishment Act (Retail Department store, above 50 employees worked), there are no standing orders in place. Therefore, an employee who is receiving a pension and has settled their provident fund, is rejoining after 58 years. Are they eligible or non-eligible for receiving gratuity? Please inform us.

Dear Soundhar,

In India, apart from the provisions of the Child Labor (Prohibition & Regulation) Act, 1986, which forbids the employment of children below the age of 14 years and adolescents in certain specified hazardous occupations or processes, there is no statutory bar on entry into general employment nor any age of exit except for the service regulations of individual organizations in the non-Governmental sector. Therefore, it is at the discretion of the individual employer to re-employ a superannuated person either as a regular employee, a Fixed Term Contractual Employee, or as a consultant on a retainer basis. In the case of retainership, no gratuity is payable irrespective of the length of service as it is only a contract for service. For regular employees, the re-employment constitutes a fresh innings of service, and gratuity would be payable as per the provisions of the Payment of Gratuity Act, 1972. If the re-employment is on a Fixed Term Contract basis, gratuity would be payable in proportion to the length of service, regardless of the minimum qualifying service under the P.G Act, 1972.

Thank you.