Anonymous
6

Dear HRs,

Is gratuity applicable to senior citizens in private organizations? The senior citizen employee worked for a period of 8 months and is claiming gratuity payment for that duration. Our payment structure is based on Cost to Company (CTC), which includes additional benefits in addition to the gross salary.

From India, Hyderabad
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First of all, let the forum know how a person at the age of 67 years joins a company as an employee. If the employee has indeed joined the company, what is the age of retirement mentioned in his/her appointment letter? Please clarify.
From India, Ahmadabad
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There is no ban on appointing a person of 67 yrs on fixed term contract .If he works for at least 5 years then he is entitled for gratuity as per POG Act. Varghese Mathew 09961266966
From India, Thiruvananthapuram
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Well, the senior citizens are often employed on a contract basis and not as permanent employees. A person can be eligible for gratuity if he has served continuously for an organization for five years. Therefore, an employee who is already retired and is 67 years of age, working in your company for 8 months, cannot ask for or claim gratuity.
From India, Lucknow
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If a person is employed on a Fixed Term Contract, then he/she cannot claim Gratuity for 8 months of his/her employment. Also, I kindly request you to let the forum know what benefits are included in the CTC apart from Gross salary as you mentioned in your query.
From India, Ahmadabad
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Thank you to all for providing such information in this regard. I made a mistake in mentioning the employee's age; instead of 57 years, I wrote 67 years. I apologize for this error.

In our company, gratuity of 4.81% is deducted from the basic salary of employees, and we display this under additional benefits. In this case, the employee is requesting payment of his gratuity as he is a senior person and is unable to continue his service with us. Please understand my situation; I am seeking clarification on whether the gratuity is payable to him or not.

From India, Hyderabad
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From India, Ahmadabad
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Greetings to all,

I worked in a company for 5 years and 3 months. When I joined, they didn't release any appointment letter as they had no provision or HR department to take care of this task. After 2 years, they registered the company as a PVT. LTD firm and renamed it, although no official intimation was provided to the employees. I left this company 2 years ago and obtained an experience/relieving letter for my tenure of 5 years and 3 months.

Now, when I sent a request for gratuity payment, they are attempting to avoid it by claiming that I had only been associated with the company for 3 months. This is because they had registered my records under the old company name, which was later renamed. Can someone please guide me on whether I can legally claim my gratuity? I only have a relieving letter and bank statements as proof that I was associated with that company for more than 5 years.

Thanks & Regards,

From India, Bangalore
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Dear Umraz, File claim before the Controlling Authority under Payment of Gratuity Act in your area or where your establishment was located.
From India, Panipat
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If a company is appointing a retired person (above 58/60 as the case may be), the company should keep him on a contract basis with a lump sum. However, if the company continues his employment as a regular employee, according to the Gratuity Act statute, a person has to work for 5 years. A retired person is well-versed in this Act. The company has to make provisions from the completion of the first year regarding Gratuity. If he leaves the company, the company is not bound to pay any money on account of Gratuity.
From India, Mumbai
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Dear Mr Govind I appreciate your reply, I have asked for clarification which was given and appropriate replies were sent.
From India, Ahmadabad
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Hi Kohinoor Foods Limited HR,

One person worked in a government banking sector until his retirement age of 60 years, where he received Rs. 300,000 for Gratuity. After retirement, he joined our public limited company as a DGM-Banking with a regular appointment letter (fixed term) for two years. He worked for over 5 years with service extended three times and has now resigned at the age of 67.

There is no standing order passed by any authority. As per our recruiting policy, the normal retirement age is 58 years, and according to our Gratuity trust account, the age limit is also 58 years. Could you please confirm if this person is eligible to receive Gratuity from our company? If so, how much would that be?

Thank you and regards.

From India, Gurgaon
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Dear Sir,

Some of our senior employees have retired and received their full and final settlement from the company. They are currently receiving a pension from EPF. We have re-appointed them for regular employment on a fixed-term basis and have extended their re-appointment time to time. Could you please advise us on whether they are eligible for EPF and Gratuity in this scenario?

Thanks & Regards,
ANIL KUMAR

From India, New Delhi
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So far as EPF is concerned, if the employee is receiving a pension from EPFO, the employee is considered an excluded employee and not covered under PF.

If the continuous employment by extension is 5 years or more, the employee will be eligible for Gratuity.

S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions +91 98310 81531 USD HR Solutions – To strive towards excellence with effort and integrity

From India, New Delhi
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