We have an employee who is retiring on 30 June 2024 and we would like to continue his services for next one year. He has served the company for 15 years and eligible for Gratuity.
Do we need to pay the gratuity now and complete the process and if we want to pay next year, do we need to consider extended service also for Gratuity calculation ?
From Germany, Waldenburg
Do we need to pay the gratuity now and complete the process and if we want to pay next year, do we need to consider extended service also for Gratuity calculation ?
From Germany, Waldenburg
If you are not settling his gratuity now but keeping him for one more year, then the gratuity payable next year will be more because one more year will be added to his service. At the same time, you can settle the gratuity now and keep him as an employee for an extended period of one or two years. When he retires then, he may not be entitled to any gratuity for the extended time. But if his extended time extends to another five years, then that period will earn him gratuity. Similarly, if the law off gratuity is revised as per the new Labour Codes proposed with in that period, he should be paid gratuity for that extended period even if that extended period do not account for five years. Therefore, it is always good if you pay the gratuity now and then offer employment as per a separate offer with different service conditions.
From India, Kannur
4249From India, Kannur
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc