HR says that they will deduct gratuity amount for the LOP days - will be considered as service break

I was working in a private channel which runs as per shops and establishment act. Due to certain family matters I have to take LOP (loss of pay ) from May 3rd week to Sept first week. It was with the approval from the top management by oral. I gave my resignation in sept first week. Till that time entire administration of bureau was done by me including receiving and spending bureau fund. Now ,when the time for settlement comes, HR says that they will deduct gratuity amount for the LOP days as these will be considered as service break. I request you to give a reply in this regard

There is no provision in the Payment of Gratuity Act to make the deduction for any absence which has been regularised. Regularised absence is part of continuous service as Section 2A of the Act. This deduction is illegal and you shall protest against such a decision. If they persist then a formal protest letter could be issued. This decision will not stand the test of law and if all persuasions fail, you may approach the Local Labour Office and lodge your complaint.