Gratuity Eligibility: Does Extended Medical Leave Affect Final Year Calculations?

Dear Fraternity Members,

One of our employees has been on consistent medical leave and has now decided to resign. He has completed 7.6 years of service and is eligible for gratuity. Is there any clause pertaining to gratuity where a person must work a particular number of days in the last working year for the calculation of gratuity? Please guide.

Regards,
R. Shah

Entitlement for Gratuity

First, he is entitled to gratuity. Please read Section 4 of the Act as well. A reading of Section 2A will make it clear that his medical leave will not reduce his entitlement to gratuity.

Continuous Service

For the purposes of this Act, an employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service. This includes service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as a break in service has been passed in accordance with the standing orders, rules, or regulations governing the employees of the establishment), lay-off, strike, or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.