Employee retired this month and management extended his service for further 2 years - Employee wishes to withdraw the gratuity

Our company employee's normal retirement age is 58 years. One employee retired this month and management extended his service for further 2 years.
But the Employee wishes to withdraw the gratuity. We would like to know the procedure.

Hi,

In that case you can relieve him from the regular rolls of the employment and process his full and final settlement including Gratuity. Immediately from next day you can hire his services as Retainer consultant with mutually agreed salary. In this case PF deduction not required and only TDS will be deducted from his Retainer Fee.