Does Taking a One-Month Break Affect Gratuity Calculation? Let's Discuss!

Hi,

If a person goes out for one month by resigning from the job and rejoins after one month, will it be considered a break in service for gratuity calculation?

Kindly answer.

Thanks.

As per the Gratuity Act, an employee is eligible for gratuity after 5 years of uninterrupted service in an organization. Since you mentioned the employee resigned and rejoined after a month, he is not eligible for gratuity and must serve continuously for 5 years from the day of rejoining. I hope this clarifies your concern.

Thank you,

Regards,
Amjad Ansari

By continuous service, it is meant service of 240 days in a year. Therefore, if during the year in which he resigned and was allowed to rejoin service he had worked for 240 days, the same year will be considered as continuous service along with other periods. Therefore, just with one month's break in service, one may not lose his eligibility to get gratuity.

The logic I have observed in the above is that if the service of the employee had been poor, the employer would never have allowed him to rejoin once the employee resigned and was relieved. Therefore, there is nothing wrong in regularizing the service of such an employee and paying him whatever benefits to which he is entitled by statute when he leaves later. If the employer is so particular that he should not be given the benefits, do not allow him to rejoin.

Regards,
Madhu.T.K