Dear members, I have one doubt - an Employee (Manager Cadre) after superannuation left and organisation and joined in X company, in X Company he completed 5 years of service in Manager cadre and left , my question is, whether this employee is eligible for Gratuity or not?
From India, Hyderabad
From India, Hyderabad
Dear Venkatesh,
The precise answer to your query is that the individual is entitled to gratuity from both the establishments provided that on the date of termination of his employment from each, the respective establishment comes under the purview of the PG Act, 1972.
I think that you raise this doubt because of the following reasons:
(a) The individual had already rendered service in the first establishment and got retired on attaining the age of superannuation and probably got gratuity for that service.
(b)The second innings of his employment in another establishment is after the age of superannuation.
(c) Besides, the subsequent spell of service happens to be also in the managerial cadre.
There is no legal ban on post retirement employment excepting certain Constitutional posts.
It is the individual employer's prerogative to fix the age of superannuation of his employees based on some rationale such as the rigours of employment on ageing.
Gratuity, being a lump sum one time terminal benefit for certain no of years of blemishless continuous service rendered under the same employer, there is no ban on subsequent employment in the same establishment or elsewhere under a fresh contract of employment.
No cadre-wise classificatory distinction of employees under the PG Act, 1972.
Of course, there is restriction cumulatively applicable on the maximum amount of gratuity receivable by the same employee for more than a single spell of service as per the provisions of the Income Tax Act.
From India, Salem
6018The precise answer to your query is that the individual is entitled to gratuity from both the establishments provided that on the date of termination of his employment from each, the respective establishment comes under the purview of the PG Act, 1972.
I think that you raise this doubt because of the following reasons:
(a) The individual had already rendered service in the first establishment and got retired on attaining the age of superannuation and probably got gratuity for that service.
(b)The second innings of his employment in another establishment is after the age of superannuation.
(c) Besides, the subsequent spell of service happens to be also in the managerial cadre.
There is no legal ban on post retirement employment excepting certain Constitutional posts.
It is the individual employer's prerogative to fix the age of superannuation of his employees based on some rationale such as the rigours of employment on ageing.
Gratuity, being a lump sum one time terminal benefit for certain no of years of blemishless continuous service rendered under the same employer, there is no ban on subsequent employment in the same establishment or elsewhere under a fresh contract of employment.
No cadre-wise classificatory distinction of employees under the PG Act, 1972.
Of course, there is restriction cumulatively applicable on the maximum amount of gratuity receivable by the same employee for more than a single spell of service as per the provisions of the Income Tax Act.
From India, Salem
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
SBT Vs Asst. Labour Commissioner- Gratuity dismissed employee-LTS.PD F
FORM I(Application for Gratuity by an employee).doc