Gratuity Dilemma: Does a Year with Only 170 Workdays Count for Long-term Employees?

Need a clarification that one of the employees had worked for 23 years of service and then quit from the organization. Out of the 23 years of service, in the 2nd year, he had only worked for 170 days (the remaining days as leave without pay) instead of 240 days. When calculating the gratuity, the 2nd year will be considered for gratuity.

The minimum criteria for eligibility for Gratuity in a year is the completion of 240 days of service. Hence, gratuity is not payable for a year where the individual worked less than 240 days.

As stated by Kumar, you do not need to consider the year for calculation if the employee has not worked for 240 days.