One of my employees has been on leave without salary for the past 7 years. Now, he has submitted his resignation letter. Which salary should be considered for calculating gratuity? Should it be the salary he last drew 7 years ago or the salary he would have received if he had not been on leave without pay?
Thank you.
From India, Trichy
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Thank you.
From India, Trichy
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How could the company allow such a long leave for a period of 7 years? Is his name still on the Payroll Register? For gratuity, you need to have 240 days of present working days in a year, following the standing rules of your company. Calculate his last basic salary at the time of resignation (relieving) for the gratuity calculation; refer to your payroll register for proof.
Seniors, please shed light on this matter.
Regards,
Ashish
From India, Pune
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176Seniors, please shed light on this matter.
Regards,
Ashish
From India, Pune
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Leave Encashment & Salary Calculation.xls x