My name is Gnana Prakasam, and I am currently working in an NGO (Private). My service condition says, "The age of retirement shall be 60 years with extension up to 5 years based on yearly performance review or as specified in the letter of appointment." I am now 65 years old.
I have been working in this NGO since December 2007, and am to retire on May 31, 2020 (12.5 years). I have been in continuous service with periodic letters of renewal/extension appointment. The NGO is registered under LIC Group Gratuity Scheme. Am I eligible for the grant of gratuity for 12.5 years or only up to 7 years when I completed 60 years of age? I would be really grateful if you could help me.
From India, Hyderabad
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I have been working in this NGO since December 2007, and am to retire on May 31, 2020 (12.5 years). I have been in continuous service with periodic letters of renewal/extension appointment. The NGO is registered under LIC Group Gratuity Scheme. Am I eligible for the grant of gratuity for 12.5 years or only up to 7 years when I completed 60 years of age? I would be really grateful if you could help me.
From India, Hyderabad
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You will be entitled to full gratuity for all the years of service, including any extensions granted. Please submit your claim to your company. The company will make the payment through the gratuity fund with LIC. I don't anticipate any issues.
From India, Pune
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3251From India, Pune
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The post-retirement extension for the next five years should be reckoned for computing the total years of service, and hence you are eligible to receive gratuity for 12.5 years when you reach the age of 65.
As your company has taken out a policy under group gratuity insurance with LIC of India, you are entitled to gratuity for a tenure of 12.5 years. This opinion is based on the premise that your company has not settled your gratuity upon reaching the age of 60 and issuing a formal notice of retirement, resulting in the settlement of gratuity. Furthermore, if your company issued another letter appointing you on a contractual basis for one year initially (with a consolidated salary lower than what you were earning just before retirement) and subsequently extending the contract each year until your final year of service, the scenario changes. In such an event, you are still eligible for gratuity for the completion of five years of contractual service, but with continuity of service.
Panchsen
9884009193
P. Senthilkumar
Industrial Relations and Labour Law Consultant
From India, Chennai
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As your company has taken out a policy under group gratuity insurance with LIC of India, you are entitled to gratuity for a tenure of 12.5 years. This opinion is based on the premise that your company has not settled your gratuity upon reaching the age of 60 and issuing a formal notice of retirement, resulting in the settlement of gratuity. Furthermore, if your company issued another letter appointing you on a contractual basis for one year initially (with a consolidated salary lower than what you were earning just before retirement) and subsequently extending the contract each year until your final year of service, the scenario changes. In such an event, you are still eligible for gratuity for the completion of five years of contractual service, but with continuity of service.
Panchsen
9884009193
P. Senthilkumar
Industrial Relations and Labour Law Consultant
From India, Chennai
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FORM-F-NOMINATI ON OF GRATUITY.pdf
Gratuity Form I.doc