Am I Eligible for Full Gratuity After 11 Months of Leave Without Pay?

Hi,

I have been working in a private organization for 5 years. However, during that period, I was on Leave Without Pay (LOP) for 11 months. Am I eligible for gratuity? If yes, will I receive the full amount or only for the period I worked?

Regards,
Nysha

Hi Nysha,

Please specify the reason for LOP. Based on that, I can answer your queries.

Regards, Amitava

I was in an IT company. The leave without allowance was granted by the company for personal reasons, to accompany my husband who had gone onsite to work for the same organization.

Dear Nysha,

You are entitled to receive the gratuity amount as per the court judgment once you have completed 4 years and 10 months of service. The judgment copy is enclosed herewith for your reference.

Thank you.

Hi,

As per the Gratuity Act of 1972, if a person has completed 4 years and 240 days in a company, he is eligible for gratuity.

Warm Regards,
Pooja Gulati

For each year of reckonable service, for the purposes of gratuity, one has to put in continuous service of 240 days each year. Leave Without Pay, being sanctioned leave, is included in the 240 days. Therefore, if you qualify the 5-year clause including your LWP, yes, you are entitled to payment of gratuity.

Best Wishes, Vasant Nair Director Karma-HR 9717726667

I concur with Vasant Nair. LOP should have been sanctioned to be included in continuous service. However, have a look into the rules and regulations of the company governing these issues.

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As per my HR Dept,

I have opted for LOP leave, and hence the leave can be considered as a break in service. For example, if a person joins the company and takes leave for 5 years to go abroad or pursue higher studies, even with the company's permission, then gratuity is not applicable to that person. They are saying that this break in service is disputable, and decisions are made on a case-by-case basis only.

Any feedback on this?

Regards, Nysha

Hi,

Recently, I resigned from a PSU after 5 years of service. However, according to my HR department, I am not eligible for gratuity because these five years include 1.5 years as a Graduate Engineering Trainee. Could you please clarify if this is correct according to the Gratuity Act? I have limited knowledge of these policies and acts.

I am about to join a company abroad, so there will be no joining in any other PSU. I highly appreciate your feedback on this matter.

Regards,
Rakesh G.

Hi Nysha,

I agree with the comments of Pooja that one must have to perform 240 days of attendance each year to become eligible for Gratuity after 5 years. The leave availed, whether with or without pay, will not be included in the 240 days of attendance for the eligibility of Gratuity payment. Even after completion of 5 years, if one has not put in 240 days of attendance, he/she will not be entitled to gratuity for that particular year.

Regards,
SC BHATIA