Hello, can someone please help with the calculation of continuous service (i.e., 5 years)? I have served in an organization from 9th December 2019 to 8th November 2024, with an unpaid leave of 3 months due to personal reasons from 1st April '23 to 30th July '23.
The employer is denying paying gratuity, saying that I didn't complete 5 years of service because of my leave. I am calculating 5 years from 2020 to 2024. Will 2023 be counted as a full year of service in my case?
From India, Bengaluru
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The employer is denying paying gratuity, saying that I didn't complete 5 years of service because of my leave. I am calculating 5 years from 2020 to 2024. Will 2023 be counted as a full year of service in my case?
From India, Bengaluru
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Hi, If those 3months unpaid leave is approved one then this period should also be considered for the purpose of calculating Gratuity. Employer cannot deny.
From India, Madras
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1015From India, Madras
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Dear, As gratuity act , if employee completes the service 4 years and 240 days in 5th year ,he is eligible to Gratuity.
From India, Pune
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From India, Pune
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Will my one year internship period be considered for gratuity or only full time employment period be considered?
From India, Chennai
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From India, Chennai
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Gratuity Eligibility Under the Payment of Gratuity Act
As per the Payment of Gratuity (PG) Act, gratuity is payable after rendering 5 years of continuous service. Further, the period short of 6 months is not reckoned, and if it exceeds 6 months, it is considered as a full year. In your case, you have rendered 4 years and 11 months of service with 3 months of unpaid leave. If the unpaid leave was granted/approved by the Competent Authority, the gratuity is payable. Even if the period is not reckoned as continuous service, the period of service is 4 years and 8 months, which amounts to 5 years, as per the rule given in the PG Act.
So, in my opinion, gratuity is payable under the PG Act.
From India, New+Delhi
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As per the Payment of Gratuity (PG) Act, gratuity is payable after rendering 5 years of continuous service. Further, the period short of 6 months is not reckoned, and if it exceeds 6 months, it is considered as a full year. In your case, you have rendered 4 years and 11 months of service with 3 months of unpaid leave. If the unpaid leave was granted/approved by the Competent Authority, the gratuity is payable. Even if the period is not reckoned as continuous service, the period of service is 4 years and 8 months, which amounts to 5 years, as per the rule given in the PG Act.
So, in my opinion, gratuity is payable under the PG Act.
From India, New+Delhi
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Even if the unpaid leave is not approved, if the employer has not issued an order to the employee treating that unpaid leave as a break in service as per the terms of employment or rules of the company, that period of absence is considered as uninterrupted service.
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
Less than 5 years service - Eligibility for payment of gratuity.pdf