Hi my dear all HR friend, We have an employee, who completed 6 years and 7 months in the organization.
But due to some health issues, he has taken some leaves in the last 7 months. We have 5 days a week working.
So, should we consider gratuity for 6 years or 7 years?
Please advise.

From India, Ahmedabad
Dear Neha,
A thorough reading of Sec. 2-A of the PG Act,1972 which defines "continuos service" under the Act would reveal that it requires only the no of days of unauthorised absence of an employee in a period of 12 months which was declared by the employer as break in service under an enabling provision of any service regulations to be excluded from the computation of continuous service for entitlement to gratuity. Since you refer to the absence of some days in the last 7 months of his service as leave, it implies that such absence is authorised leave only.
Therefore, by rounding of, the employee becomes entitled to 7 years of gratuity under the Act.

From India, Salem
But those leaves were approved and its not a break in service. so how will you deal with a person who is on maternity leave, will you not consider it as a continuous employment.
From India, Ahmadabad
Maternity leave should be treated as duty for the purpose of continuity of service.
From India, Salem
An employee completed 7 years and 7 months ( in the eighth year he did not complete 240 days) will he be entitled gratuity for 8 years?
From India, Jalandhar
Dear Mr Balbir,
Employee in question who has Completed 7 Years & 7 Months Service, is eligible for Gratuity payable for 8Years.6 Months & above Service after Completion of 5 Years should be rounded off to 1 Year. After Completion of Minimum of 5 Years Service, question of not Completing 240days does not arise

From India, New Delhi
Dear Neha,
As the employee has completed 6 years an 7 months, he is entitled to get gratuity for 7 years.As you mentioned he took authorised approved leaves.So after the completion of 5 years,6 months and above service will be rounded off to 1 year.So the employee is eligible to get Gratuity for 7 years.
Regards,
Priya

From India, Bengaluru

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