Gratuity Calculation Dilemma: How to Handle 706 Days of Leave Without Pay?

Dear Seniors,

One employee has 706 days of LOP. Hence, we want to calculate the number of gratuity eligible years. So, are 706 days divisible by 26 days or 30 days?

Urgent, please

Hi,

It needs to be calculated year-wise and divided by 26 always. You may have taken 706 LOP's during his/her whole service record, but it needs to be segregated as per year.

Regards,
Harpreet Walia

In each year, employees should have worked for a minimum of 240 days. The year in which an employee does not have a minimum of 240 days, gratuity can be withheld only for that particular year. However, before resorting to this, the employer has to issue a show-cause notice to the employee, calling for an explanation as to why the gratuity amount should not be forfeited for the years in which the employee has not worked for a minimum of 240 days.