Dear seniors,

I had worked with an IT company for 4 years 8 months and 17 days. As I have completed 240 days in the 5th year, I'll be eligible for gratuity. But I would like to ask whether the casual/privilege leave and Saturday/Sunday will be counted within those 240 days of the last year.

The HR team of my company is also not aware of this. They are asking if I can provide this information in writing.

Kindly suggest.

Regards,
Preeti

From India, Delhi
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Dear Preeti,

Please refer to Section 2A of the Payment of Gratuity Act, 1972, regarding continuous service in your HR department.

R.N. KHLOA | Sr. ASSOCIATE | LL&IR | SKYLARK ASSOCIATES | GURGAON | HARYANA | Labour Law Consultants | Mobile: 9810405361 | [Welcome Skylark Associates](http://www.skylarkassociates.com)

Thank you.

From India, Delhi
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Hi Preeti,

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 with your leave entitlement. Because if it's not an approved leave, then it would amount to LWP, which would imply a break in service. So, unauthorized leave would result in a breakage in continuous service and hence would pose an issue when checking your eligibility for Gratuity. Sat/Sun (if they are official weekly holidays in your organization) would not be considered a breakage in service. The entire concept revolves around the computation of the term "continuous service".

Right then, get back into your leave records and check for the same.

From India, Mumbai
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Dear Senior,

All my CL/PL leaves have been approved, and there has been no LWP throughout my tenure. Saturday and Sunday are the weekly holidays. I have already reviewed section 2A and shared the information with the HR team. I will make sure to communicate with them again.

Thank you for your suggestion.

Regards,
Preeti

From India, Delhi
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Dear Preeti,

Gratuity eligibility states that 5 years of service are required to be eligible for gratuity. If you can convince them, then that is good, but in my view, 5 years of service are required to be eligible for gratuity. As you have not completed 5 years of service, then you are not eligible.

From India, Delhi
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Dear Member,

The term continuous service of 240 days, inclusive of authorized leave, lay-off, maternity leave, etc. There are a lot of cases won in different High Courts of India when an employee completes 4 years plus 240 days and qualifies for gratuity payment. It is absolutely a misguidance that an employee should complete 5 years of service to qualify to get gratuity.

Imagine that you might have worked for 4 years plus 220 days and then taken unauthorized leave for a period of one month, or you have submitted your resignation papers. In such a scenario, the question will arise whether you are eligible for gratuity or not. Even when you are on unauthorized leave and there is no communication from the management regarding the sanction of leave or its grant, you are deemed to be in service and automatically qualify for gratuity.

From India, Madras
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