Is My Company Right to Deduct Gratuity for 3 Months of Unpaid Leave? Seeking Advice

Dear Sir/Madam,

One of my colleagues has resigned, and his length of service is 10 years, 8 months, and 21 days. The company is paying him gratuity for 10 years and 5 months, stating a total loss of pay for 3 months during his tenure of service.

Kindly suggest if this practice by the company is right or wrong.

Regards,
Jagannath Pandit

Dear Jagannath,

If any orders treating the period of loss of pay as a break in service were passed, then only that period cannot be taken into account to compute the actual length of qualifying service for gratuity.