Labour Laws & Ir
Gm (hr)
Hr Consultant
+1 Other

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Dear seniors
I had worked with an IT company for 4 years 8 months and 17 days. As I have completed 240 days in 5th year, I'll be eligible for gratuity. But i would like to ask whether the casual/privilege leave and sat/sunday will be counted under those 240 days of last year.
HR team of my company is also not aware of this thing. they are asking if i can provide this thing somewhere in written.
Kindly suggest.

Dear Preeti,
Plz refer section 2A of Payment of Gratuity Act, 1972 on continuous service to your HR department.
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Welcome Skylark Associates

Whether you have put in 5 years of continuous service is what is required to be seen.
I understand, for the CL/PL-you have availed the same after taking the approval in accordance to your leave entitlement. Because, if it's not an approved leave, then it would mount to LWP and which would imply a break in service. So, unauthorized leave would mount to breakage in continuous services and hence would prop up as an issue when checking your eligibility for Gratuity. Sat/Sun (if they are official weekly holidays in your organization) would not be considered to breakage in service.
The entire concept revolves around the computation of the word called "continuous service".
Right then, get back in to your leave records and check for the same.

Dear Senior,
My all leaves CL/PL are approved and there is no LWP in the whole tenure.Saturday and Sunday are the weekly holiday.
I had already gone through the section 2A and provided the same to the team HR. I will try to conveyance them again.
Thanks for your suggestion.

Dear preeti
gratuity eligiblity says 5 years of srevice is required to get eligible for gratuity.
if you can conveyance them than it is good but in my view 5 years of service is required to get gratuity.As you have not completed 5 years of service thyan you are not eligible.

Dear Member,
The term continuous service of 240 days inclusive of authorised leave, lay-off,maternitiy leave etc. There are lot of cases won in different HC's of India, when an employee completes 4 years plus 240 days and qualifies for gratuity payment. It is obsolutely a mis-guidance an employee should complete 5 years of service to qualify to get a gratuity. Presume that you might have worked 4 years plus 220 days and remain unauthorized leave for a period of one month or you placed your papers of resignation, then the question will arise whether you are eligible for gratuity or not. Even when you are in an unauthorised leave and there is no communication from the mangement for the sanction leave or grant thereof, you are deemed to be in service and automatically qualified for gratuity.

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