Respected HR experts,
I found a different case of Gratuity. A person was recently asked for gratuity by resigning from his job,

I am sharing his tenure calculation:
Date of Joining: 17.11.2016, and Date of Exit: 30.11.2021, Service Years: 5.04 years (from DOJ to DOE)
His attendance details: F.Y. 2016-2017: 4 months, F.Y. 2017-2018: 11 months, F.Y. 2018-2019: 12 months, F.Y. 2019-2020: 10 months, F.Y. 2020-2021: 10 months, F.Y. 2021-2022: 8 months (up to 30.11.2021)

So, the total work month is: 55 months which means: 4.6 years,
But the service period is: 5.04 years (including absence)

please tell me if He is eligible for gratuity or not?

From India, Thane
Labour Law & Hr Consultant
Management Consultancy


Dear Pankaj,

I think that you have to recheck your calculation.

From the actual date of joining i.e 17-11-2016 till the actual date of relieving on resignation i.e 30-11-2021 as per your post, the employee's total length of continuous service including absence, if any would be exactly 5 years and 13 days only.
The number of days of unauthorized absence, if any, has to be included in the continuous service for gratuity, if not already declared as break in service as per the standing orders or service regulations of the establishment. For the purpose of computing continuous service under the Payment of Gratuity Act,1972, you may refer to section 2-A of the Act.

Therefore, the employee is eligible and entitled for gratuity for 5 years of continuous service.

From India, Salem

From the data given in the query it is amply clear that the workman has completed 'continuous service' of more than 5 years and is eligible for gratuity. This is so as absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing order, rules or regulations governing the employees of the establishment) is to be treated as continous service as per Section 2 A of the PGA 1972.
From India, Mumbai

It is sad but true that many do not understand the Process of Absence -Unauthorized and Authorized. The Authorized Absence is called LEAVE- If Leave Applied is not Approved that should be intimated to employee. But at the first instance, particularly in IT or ITES establishment, the HR must take the lead in explaining the Leave Procedures and if rejected the Leave Sanctioning Authority must communicate his decision. He can't shurk his responsibility and later claim that he had not sanctioned Leave.
From India, Chennai

There is a similar case with a friend of mine in which after a period of 4 years and 8 months that has very flawed HR policies that favour the management than the employees. The employee had a minor quarrel with his superior and did not use any abusive language nor engage in violence but the HR called the language as being "unprofessional" and suspended him for 15 days. Post that he continued in service for 3 more years. After this the employee just joined back, there was no change in the employment nor was he terminated and rehired. But the company argues that it amounted to break in service and therefore he is not eligible for gratuity. Is there any legal validity in this?
From India

Mere break in service is not sufficient to deny gratuity in an otherwise continuous service. As per Section 2 A, service though interrupted has to be counted unless an order treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment. As per query such an order has not been passed and the facts show there is continuity, so the employee has every right to claim gratuity.
From India, Mumbai

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