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I understand that the enactment of the new gratuity act is expected w.e.f from 1st April 2010. I work in a big private company. My normal retirement was due in the month of September 2010, but my service was extended for one year by the MD. Now my retirement is due on 30th September 2011. If the limit of gratuity is enhanced from 3.5 lac to 10 lac, will I be entitled to this benefit. S. Dey
From India, Calcutta
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Dear S. Dey,

If the effective date of the amendment of the P G Act relating to this enhancement happens to be before your retirement, then in that case, you will get this amount.

With Regards,
R. N. Khola

From India, Delhi
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Even though your retirement was due this year sept 2010 and extended next year. The gratuity act begins 1-04-2010whom ever retire after this date will get the benfit.
From India, Hubli
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Dear Mr. Khola,

Thank you very much for your reply. However, I have made a mistake in writing the year. Actually, my normal retirement date was September 2009 (at 60 years of age). Six months before my scheduled retirement date, my Managing Director, through a letter, granted an extension for one year until September 2010. The letter stated that the extension was made 'with existing terms and conditions.' Recently, the Managing Director who signed my extension letter has been replaced by a new MD.

Now, if the ceiling of gratuity is raised from 3.5 lac to 10 lac, effective from April 1, 2010, and I retire after the date of the amendment of the act, would I be entitled to the new ceiling of gratuity?

S. Dey

From India, Calcutta
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Dear S Dey,

We are to determine the effective date of the applicability of the amended Payment of Gratuity Act, 1972. If the date of retirement falls within the effective date of applicability of this amendment, then you will receive gratuity according to the amended Payment of Gratuity Act. Orders related to the extension of your service period will not be affected by the change of Managing Director.

Opinion submitted as requested.

With Regards,
R.N.Khola

From India, Delhi
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Dear Mr. Khola,

Thank you very much for the reply. There is an opinion that even though my service was extended beyond 60 years, since my normal retirement was due in September 2009, if there is any change in the Act (after September 2009), i.e., during my extension period, I may not be entitled to the benefit of the change.

Would you kindly once again confirm that my extended service period will be considered as a normal service period for the calculation of gratuity, and I shall get the benefit of any change in the Act.

Sorry for bothering you too much.

Regards,
S. Dey

From India, Calcutta
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Dear S Dey, As you are continuously working without by break or taking full & final payment, therefore, in my opinion you will get the benefit as discussed above. Regards, R N KHOLA
From India, Delhi
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