Medical Leave Beyond Accrued Days: Does It Count as a Break in Service?

Dear Friends,

My name is Abhishek. I am working in a Real Estate Company in Delhi. I want to know if an employee is on leave due to medical reasons (fracture/slip disc, etc.) for more than two months and all his accrued leaves have been exhausted, will his LWP (leave without pay) be treated as "Break In Services"? What does the law say about this? Please advise.

Thanks & Warm Regards,
Abhishek

Hi,

First, what are the leave rules of your company (if any!)?
Then, I need to know if your company is registered under the local Shops & Commercial Establishments Act.

Pending these two queries, I state that your being on LWP is NOT a break in service! But such nice-sounding advice depends upon:
1) Applicable law.
2) The terms and conditions of your employment (these are normally outlined in your letter of appointment).
3) Service applicable to you and if these provide for any such contingency that you may have agreed to inadvertently.

Even so, in the normalcy of employment situations, LWP is NOT a break in service. I am aware I may have to revise my opinion if the above documents provide to the contrary. Would you like to check these out and inform me?

Regards,
Samvedan
June 9, 2007

Dear Samvedan,

Thank you for the reply. Let me answer your queries first. Our company is a public limited company and is covered under the Delhi Shop & Establishment Act. Employees can enjoy 12 CL and 15 PL in a financial year.

So, you mean to say that if our company adds this "LWP & Break in services" point in the employment agreement, then it will be legal?

Waiting for your expert advice.

Regards,
Abhishek

Hi,

No, I did not mean that at all. Such a provision will be unsustainable in the eyes of the law anyway. I just wanted to know where we stand!

Now, did you ask for LWP to be sanctioned for the very reasons that it had to be LWP? If you asked for the same to be sanctioned and it was sanctioned, the LWP shall not be a break in service. If you had NOT asked for such a sanction but were allowed to be away (even without a sanction) again it will not be a break in service.

At worst, the company may take a negative view of your absence on LWP despite the genuineness of the reasons, and that would be unfortunate, but it will still NOT be a break in service.

Therefore, on all counts, this LWP will NOT lead to a break in service, but sometimes some companies do make provisions to this effect, and while they allow the candidate to continue to hold the job, they deprive him of continuity of service and make it difficult for him to wait again for FIVE years for gratuity!!! I just wanted to know that your company was NOT of this type.

It is clear based on the data provided by you that the LWP will NOT cause a break in service in your case.

Cheers & regards,

Samvedan

June 9, 2007