Navigating Long-Term Unpaid Leave: Can We Terminate or Offer Early Retirement?

One employee of our organization, aged 59 years, has been on leave without pay for an extended period (more than 3 months), having requested leave extensions 2-3 times. I seek advice on the following points:

1. Can we terminate his service based on his prolonged leave without pay, considering his previous service period of 28 years?
2. Is he eligible for gratuity during his absence period?
3. Can we request him to consider early retirement before his superannuation?
4. What rights does he have to extend his leave without pay and for how long?

Regards,
Rakesh Dubey

Termination of Service Due to Prolonged Leave

1. Can we terminate his service on the grounds of his long-time leave, i.e., Leave Without Pay (LWP), while his previous service period is 28 years? It depends on why he is taking leave and why you are allowing it, based on what circumstances.

Eligibility for Gratuity During Absence

2. Is he eligible for gratuity during the absence period? Gratuity requires a minimum of 240 days in a year, but you will have to inform him every quarter that his working days are fewer, and he will not receive gratuity for this period.

Suggestion of Early Retirement

3. Can we write to him suggesting retirement before his superannuation? No, you cannot force him into retirement.

Rights to Extend Leave Without Pay

4. What are his rights to extend LWP days, and how much is allowed? It depends on the company's policy.