Gratuity Eligibility Confusion: Does Leave Without Pay Affect My 5-Year Service?

In my present company, leave is not allowed during the first 6 months. In case of leave, salary will be deducted, and a lesser amount of PF will be deducted. If somebody is absent from duty during this period due to a family emergency (oral approval of leave, no written sanction) and subsequently there is a deduction of salary and lesser deduction for PF during the 5th and 6th month, will he become eligible for gratuity on completing 5 years of service, or becomes eligible only after 5 years 6 months? Does salary deduction or lesser PF deduction mean discontinuity of service? (worked at least 240 days in every year; no disciplinary action after leave without pay).

Regards

Gratuity Eligibility and Service Continuity

Salary deduction or a probationary period is in no way linked with the payment of gratuity rules. If an employee has worked more than 5 years of service from the date of the appointment letter, they will be eligible to avail of gratuity once they resign or retire from that company. Only the punishment period or service break cannot be considered.

Understanding Gratuity Eligibility and Service Continuity

The period of no salary is not considered as discontinuous service unless it is ordered as per Section 2A of the Gratuity Act.

Regards

Dear Mr. Paul,

The answer to your first question is that every organization has a probation period for new employees. During that period, the employee is entitled to casual leaves. Thus, you can apply for it, and you will be paid for it. Secondly, leaves are only accepted and approved through a written application, not through oral acceptance and approvals. Therefore, for oral approval, you cannot ask the organization.

Now, coming to your question about gratuity, it is calculated for a continuous service period of 5 years. The approved and entitled leaves will be calculated in the service period.

Regards