Gratuity Calculation Dilemma: How to Handle Long Absences in Service Years?

Dear All, I am Sanjeev Patil, working as an Officer in HR. I have a doubt about how to treat a particular case in Gratuity calculation. The case is as follows: one of the employees was appointed in 1991 but was frequently absent for long periods. Between 2000 to 2005 and 2008 to 2014, he did not work for a total of 240 days. In 2011, he stopped coming to work, and now he has submitted his resignation letter.

My Questions Are as Follows:

1. Do I need to consider his total service or only the years in which he worked for 240 days?
2. For which year should I consider his Basic + DA?

I am looking forward to your suggestions.

Warm Regards,
Sanjeev Patil

An employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment), lay-off, strike, or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.

Where an employee (not being an employee employed in a seasonal establishment) is not in continuous service within the meaning of clause (1), for any period of one year or six months, he shall be deemed to be in continuous service under the employer:

(a) For the said period of one year, if the employee during the period of twelve calendar months preceding the date with reference to which calculation is to be made, has actually worked under the employer for not less than:

(i) One hundred and ninety days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) Two hundred and forty days, in any other case;

(b) For the said period of six months, if the employee during the period of six calendar months preceding the date with reference to which the calculation is to be made, has actually worked under the employer for not less than:

(i) Ninety-five days, in the case of an employee employed below the ground in a mine or in an establishment which works for less than six days in a week; and

(ii) One hundred and twenty days, in any other case.