Gratuity (Last day of work or date of Superannuation?) Please provide the relevant sections of the Acts

Dear Learned Fraternity,

I have a specific query regarding 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.

Dear Kumar,

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

Had you followed the Gratuity Act and the Rules, you would have intimated in advance to the employee about the date of superannuation and the amount of gratuity payable as per your calculation. Please go through the Rules.

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