Is a 3-Month Sabbatical Leave a Break in Service for Gratuity Eligibility? Seeking Guidance

Dear Friends,

A friend of mine who has completed 5 years of service in that company has recently shifted to a new one. When he approached the previous management for his gratuity, he was denied on the grounds that he had gone on a sabbatical leave for 3 months (permitted officially). Will this be considered a break in service, or is he still eligible for his gratuity benefits? Can someone guide me on this issue?

With regards,
Udaya

Any authorized leave does not amount to a break in service. Let me clarify, sabbatical leave must have been approved by the management, which does not amount to a break in service. The employer is misleading your friend, which is a violation of labor law (The Payment of Gratuity Act).

Regards,
Badlu

Dear Udaya,

As per the Payment of Gratuity Act 1972, a person needs to complete 5 years of continuous service without any break. The service of a person should not be interrupted on account of sickness, accident, leave, etc. Therefore, in this case, Sabbatical leave is considered as a break in service.

Regards,
Lijesh

Any leave approved by the management will be considered as working days for the purpose of eligibility for gratuity. I understand that Sabbatical leave is paid leave and not LOP. Even if the LOP is approved, there is no break in service, and hence there is no scope for holding gratuity. Yet another view is that if in any year an employee was on leave without pay but no action is taken against such an employee, then it will be deemed as regularized, and gratuity shall be paid for that year provided he/she had worked at least 190 days (not even 240 days) in that year. Hence, his eligibility for gratuity is to be decided after obtaining such information, like whether he had worked at least 190 days or not.

Regards,
Madhu.T.K

Dear Professional,

One of our employees worked for 5.2 years, and after taking a one-year sabbatical leave, it was approved by the line manager. Once he completed his sabbatical leave, he continued to work in his present job.

My question is whether he is eligible for gratuity for 5.2 years or 6+ years.

Kindly advise on the queries stated above.

Regards,
Pradeep Kumar
+91 9483775538

If it is an approved leave, he will get the benefit of 6 years' gratuity.

Madhu.T.K