Industrial Relations And Labour Laws
Nagarkar Vinayak L
Hr And Employee Relations Consultant
Insolvency N Gst Professional
+1 Other

Dear sir,
One employee is absent continuously 15 days. He got loss of pay for that 15 days.
Is this called break in service and interrupted service under the Payment of Gratuity Act ,1972
Is he eligible for gratuity under section 2A.
Can employer refuse to provide gratuity for him.
Please clarify
Thanks with Regards

From India, Hyderabad
If the 15 days loss of pay is not regularised, then this will be deemed to be interruption of service. In other words, if 15 days of LOP is due to any reason that he has no leave to his credit but the employer has sanctioned it as LOP without any remarks that this will be treated as break in service, then this 15 days' LOP will not count as break in service
From India, Kannur
Dear colleague,
No , LOP will not be treated as break in service. Service is broken only when it is terminated by either party .
In this case if the person has worked for 240 days in a year, he will earn the Gratuity for that year despite his LOP..
Vinayak Nagarkar

From India, Mumbai
Section 2A, PoGA 1972 defines Continuous Service. A perusal of the said provision would answer your question. S 2A states that absence from duty without leave (i.e., permission) cannot be ordinarily considered as an interruption in service. However, where the establishment passes an order treating such absence (i.e., without permission) as break in service, and where such order is in accordance with the standing orders, rules or regulations governing the employees of the establishment, the said absence would amount to interrupted service.

From India, Vellore
Dear colleague,
If any establishment passes such an order it is unjust and open for challenge in the court of law.
LOP without authorization at the most will rank for disciplinary action but surely treating it as break in service /interrupted service is far fetched .
I would like to know any establishment having such a condition in their S.O.s or in terms of employment..
Vinayak Nagarkar

From India, Mumbai
Dear Shri Nagarkar, this is the law. Obviously, such an order cannot be passed without hearing.
From India, Vellore
Can you say what difference your posts make from what I have posted?
From India, Kannur
The number of days of unauthorized absence indulged in by an employee may be treated as break in service or service interrupted for the purpose of reckoning continuous service under payment of gratuity act 1972, provided that the employer should issue an order in writing to the absentee employee stating that the concerned spell of absence ( duration of absence) is being treated as break in service or service interrupted .This should be done each time as and when an employee remain unauthorizedly absent from work and provided further that there should be an enabling proviso in the certified standing orders of the organisation /industrial Establishment to such an effect of passing such an order. Alternatively a proviso to this effect being incorporated in the Comanche's rules and policies duly open and published to the employees by way of a general notification or letter of appointment will be sufficient to pass an order in writing.
In the absence of any such orders being issued , the employer cannot automatically construe break in service / service interrupted of any spell /periods of absence ( even the absence period may be thee or four years ) and deny gratuity on ground that the employee has not rendered continuous service for those periods . In other words, the employee can claim gratuity even for the period of absence spanning 2 or 3 years. In fact I have a got a proviso incorporated in the certified standing orders of one of the organisations I worked for , enabling the employer to deny gratuity for those years where an employee failed to render continuous service as envisaged under the payment of gratuity act 1972, arising out of absence of an employees leading an order being passed to treat the employee's absence as service interrupted / break in service
P. Senthilkumar ( senprithvib6)

From India, Chennai
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