Gratuity Calculation Dilemma: Should Medical Leave Affect the Last Day Considered?

Dear Learned Fraternity,

I have a specific query regarding the payment of gratuity. The facts are as follows:

Employee's Joining Date: 01.06.1990

Employee's Last Working Date: 01.09.2018

Employee's Superannuation Date: 01.08.2021

The employee was on medical leave from 01.09.2018 to 01.08.2021.

Now, whether the last day for the calculation of gratuity to be considered is 01.09.2018 or 01.08.2021? Also, please provide the relevant sections of the Acts that are to be looked into, to have a better understanding.

Thanks in advance.

Superannuation and Medical Leave

The employee should have gone on medical leave from 01-08-2021, i.e., exactly from the date of his superannuation. How did the management accept the leave application without instructing him to superannuate? If the service regulations or Standing Orders have specified a certain age as the age of superannuation, the employee has no right to continue beyond that age unless his services were extended by specific orders from the management.

Gratuity Act and Rules

If you had followed the Gratuity Act and the Rules, you would have informed the employee in advance about the date of superannuation and the amount of gratuity payable according to your calculations. Please review the Rules.

Gratuity Calculation for Approved Leave Days

All approved leave days shall be treated as days worked, and therefore, he is in service until the date of superannuation, i.e., 1-8-2021. You have to calculate gratuity accordingly.