Can absconded employee be eligible for gratuity or leave encashment? - CiteHR
Nathrao
Insolvency N Gst Professional
Suresh2511
Labour Consultant
Aks17
Compliance Manager

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Can absconded employee be eligible for gratuity or leave encashment?
If Continuous service criteria is met, gratuity will have to be paid.
IN my opinion,LE also will have to be paid if due after adjustment in F& F

Hi, if you go through the Payment of Gratuity Act it is clearly mentioned that as a rule gratuity has to be paid if the employee has completed 5 years of continuous service. As most of the rules does have exception[s] so also here. You may go through Section 4 and subsection 6 to know the exception and when it is applicable. The burden is on the employer to show that the employee's act/omission falls under this exception, so the payment has been withheld. You may have to be prepared to wash the dirty linen in the public, as it has to be proved with the Labour Department and the employee too will be given a chance to disprove you.
Dear Dipti,
Yes, the employee is eligible for both gratuity and leave encashment provided complying with the norms.

Yes, he is eligible for both the gratuity and leave encashment, if continued to be in employment without any break in service. However, he is also liable for recovery of notice pay.
Suresh

Thanks all for kind Response
Yes We r running private institute,we can not put student's future at stake to hamper the class
all employees are in service agreement
01.08.2008 to 31.07.2009
01.08.2009 to 31.07.2010
01.08.2011 to31.07.2012
01.08.2012 to 31.07.2013
13.03.2014 to 13.08.2014
15.11.2014 to 15.08.2015
01.11.2015 to 31.10.2016
01.12.2016 to 30.11.2017
we can not hamper the class of students so we were giving salary in gap period without bond
but he has left the job without intimation or resignation
he is absconding till date
kindly guide

Dipti,
You have mentioned that you were giving salary in gap period means what exactly you were doing?From your post it seems that the Trainer was in your services from 1st August 2008 till 30th Nov. 2017 but not in continued services.
01.08.2008 to 31.07.2009
01.08.2009 to 31.07.2010 [COLOR="black"](He was not there for 1 year. Had he resigned and gone? Was he offered final settlement?)
01.08.2011 to 31.07.2012
01.08.2012 to 31.07.2013 (Again there was gap for almost 7.5 months)
13.03.2014 to 13.08.2014 (Gap of 3 months)
15.11.2014 to 15.08.2015 (Gap of 2.5 months)
01.11.2015 to 31.10.2016
01.12.2016 to 30.11.2017
If he has not been paid any salary for the gap periods then he is not eligible for any gratuity. He may claim continuity in services only from 13th March, 2014 and thus he has not put 5 years continuous service.
Above statement is made based on information submitted by you, which seems to be incompleted as regards to appointment letter/settlement of account/resignation etc.
Regards,
Suresh

My question is was he paid salary from 8/2008 to 11/2017 w/o a break?
If so he can be treated as having completed 5 years continuous service.
Eligibility of Gratuity and LE clears arises if employee was paid salary even in gap periods.
But if he is absconding how will you get in touch with him.
Probably write to his recorded permanent address and ask him to get in touch.
What is the exit policy as per appointment letter?
How much notice was he supposed to give the organisation?
Any salary due can be adjusted against notice period pay.

thats private institute ,employee is absconding from 01 dec
as we can not hamper the classes of students so we paid old salary without bond period as that was mutual decision....institute put fixed term employee
he has not provided resignation yet i mean till date

Send a letter to his registered address asking him to get in touch.
The letter should be by registered post as proof.
The institute pays salary even when classes are not going on if I understand correctly.
Ask him to report by a particular date and if does not report back, then steps to terminate his employment can be taken.


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