Gratuity
DR.V.NEELAKANDAN
(Querist) 11 April 2013
This query is : Resolved
I am a retired government servant.In 1994 I joined a private company and continuing till this moment.Now i am intending to quit the service. my p f subscription and e s i have been terminated and applied for the final payment. I have more than 17 years of service.Am I ELIGIBLE TO GET GRATUITY Management says that I HAVE NO ELIGIBILITY TO GET GRATUITY SINCE I JOINED ONLY AFTER MY 55TH AGE. Superannuation age of this company is fixed at the age of 58 But as a technical staff I continued there drawing salary and paying esi and pf subscriptions THANKS FOR THE EXPERT OPINIONSIR
I WANT TO KNOW WHETHER AN EMPLOYEE IS ELIGIBLE FOR GRATUITY IF HE JOINS A COMPANY AFTER HIS 55TH BIRTH DAY AND CONTINUES FOR THE NEXT 17 YEARS AS A TECHNICAL STAFF AS PER STATUTORY NEEDS DRAWING SALARY AND PAYING SUBSCRIPTIONS TO P F AND ES I.THE GOVT DEPT HAS APPROVED MY APPOINTMENT AS A TECHNICAL STAFF;IN SUCH A CONDITION AM I ELIGIBLE FOR GRATUITY
Guest
(Expert) 11 April 2013
What is the superannuation age for the retirement of an employee, as fixed by your company or as mentioned in the terms and conditions of your employment specified in your own appointment order?
B K Raghavendra Rao
(Expert) 11 April 2013
Since you have completed five years of continuous service, you are entitled for gratuity under the Gratuity Act.
prabhakar singh
(Expert) 11 April 2013
Dhingra ji!
kindly clarify this query with reference to replies.
i do not know much about it hence getting confused by replies.
Guest
(Expert) 11 April 2013
Prabhakar ji,
The querist has not yet clarified my point about superannuation date as per company terms or the terms of his appointment. While Mr. Rao has assumed that he has completed 5 years of service, Makkad ji has not added anything. So, presently, it is quite hard to make out anything out of the query with reference to replies.
Guest
(Expert) 12 April 2013
You are welcome Prabhakar ji. In fact the age of superannuation fixed by the company for retirement of its employees is the crucial age for consideration of eligibility of any employee for gratuity.
prabhakar singh
(Expert) 12 April 2013
Dhingra ji!
It appears querist has amended his post and now tells that"Superannuation age of this company is fixed at the age of 58 "
He joined while he was 55,the superannuation age in the co. is fixed 58 then his service length would be only 3 years and not 4 years 10 month as required.
He is not eligible then.
Guest
(Expert) 12 April 2013
Prabhakr ji,
Yes, he has now amended his original query, instead of replying to my query separately. Your observation is correct about his not being eligible for gratuity as his qualifying service was less than the minimum required service. That was the exact reason to ask my query just to check whether the company's was right or not in denying gratuity to him.
Guest
(Expert) 12 April 2013
You are welcome, Prabhakar ji.
DR.V.NEELAKANDAN
(Querist) 15 April 2013
SIR
I WANT TO KNOW WHETHER AN EMPLOYEE IS ELIGIBLE FOR GRATUITY IF HE JOINS A COMPANY AFTER HIS 55TH BIRTH DAY AND CONTINUES FOR THE NEXT 17 YEARS AS A TECHNICAL STAFF AS PER STATUTORY NEEDS DRAWING SALARY AND PAYING SUBSCRIPTIONS TO P F AND ES I.THE GOVT DEPT HAS APPROVED MY APPOINTMENT AS A TECHNICAL STAFF;IN SUCH A CONDITION AM I ELIGIBLE FOR GRATUITY
Guest
(Expert) 15 April 2013
Dear Dr. Neelakandan,
That all depends solely upon the terms & conditions of your appointment. The Payment of Gratuity Act provides for the minimum possible benefit that an organisation must provide. But there is no restriction if liberal terms are adopted by any prganisation for the benefit of its employees.
Normally, service only up to fixed age of retirement for the employees of the organisation is taken as qualifying service for the purpose of gratuity. So, without examination of the terms of your appointment, it is not possible to form any opinion in your individual case when the age of 58 years is the fixed age of retirement of the employees of your company.
