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.
From India, Kakinada
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From India, Kakinada
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Are you a HR person in Indian Navy? In what way gratuity eligibility is linked to retirement age? If an employee is in continuous service for 5 yrs, he is entitled for gratuity. Pon
From India, Lucknow
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616From India, Lucknow
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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.
From India, Panaji
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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.
From India, Panaji
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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]
From India, Calcutta
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Regards,
Sibabrata Majumdar
Management Consultant - Legal & HR
Kolkata, Mb: [Phone Number Removed For Privacy Reasons]
From India, Calcutta
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Dear friend, The question raised by you is of 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. S.K.Johri
From India, Delhi
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From India, Delhi
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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.
From India, Ahmadabad
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From India, Ahmadabad
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Payment of Gratuity Act, 1972 & The Rules.ppt
THE PAYMENT OF GRATUITY ACT 1972.doc