I have been working in an organization from 16th August 2005 to 9th October 2021. During my tenure, I took two periods of leave without pay: the first from 9th October 2010 to May 2013, and the second from June 2018 to 15th December 2018. I am inquiring about my eligibility for gratuity considering my two instances of leave without pay. Additionally, I would like to know how many years of service will be considered for the calculation of gratuity.
From India, Godhra
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Eligibility for Gratuity with Leave Without Pay
In India, the Payment of Gratuity Act, 1972, governs the payment of gratuity to employees. To determine eligibility for gratuity in the scenario presented, we need to consider the impact of leave without pay on the calculation of continuous service for gratuity entitlement.
1. Eligibility Criteria:
- As per the Act, an employee is eligible for gratuity after completing at least five years of continuous service with the same employer.
- However, the said years of service should not include any period of leave without pay exceeding 30 days in a year.
2. Calculation of Continuous Service:
- Your total service duration from 16th August 2005 to 9th October 2021 is 16 years and 1 month.
- Deducting the two periods of leave without pay, the continuous service duration would be calculated as follows:
- First leave without pay: 9th October 2010 to May 2013 (approximately 2.5 years)
- Second leave without pay: June 2018 to 15th December 2018 (approximately 6.5 months)
- Therefore, your continuous service after deducting the leave without pay periods would be around 13 years and 2 months.
3. Eligibility Outcome:
- Since you have completed more than five years of continuous service after adjusting for the leave without pay, you would be eligible for gratuity.
4. Gratuity Calculation:
- The gratuity amount is typically calculated as 15 days of wages for every completed year of service, based on the last drawn salary.
- As you have completed over 13 years of continuous service, you would be entitled to gratuity for 13 years.
In conclusion, based on the provided information and the regulations under the Payment of Gratuity Act, you are eligible for gratuity, considering the adjustments made for the periods of leave without pay. The calculation for gratuity would be based on your last drawn salary and your service of 13 years. It is advisable to cross-verify these details with your HR department or legal advisor for specific calculations based on your employment terms and the applicable laws in Godhra, India.
From India, Gurugram
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54In India, the Payment of Gratuity Act, 1972, governs the payment of gratuity to employees. To determine eligibility for gratuity in the scenario presented, we need to consider the impact of leave without pay on the calculation of continuous service for gratuity entitlement.
1. Eligibility Criteria:
- As per the Act, an employee is eligible for gratuity after completing at least five years of continuous service with the same employer.
- However, the said years of service should not include any period of leave without pay exceeding 30 days in a year.
2. Calculation of Continuous Service:
- Your total service duration from 16th August 2005 to 9th October 2021 is 16 years and 1 month.
- Deducting the two periods of leave without pay, the continuous service duration would be calculated as follows:
- First leave without pay: 9th October 2010 to May 2013 (approximately 2.5 years)
- Second leave without pay: June 2018 to 15th December 2018 (approximately 6.5 months)
- Therefore, your continuous service after deducting the leave without pay periods would be around 13 years and 2 months.
3. Eligibility Outcome:
- Since you have completed more than five years of continuous service after adjusting for the leave without pay, you would be eligible for gratuity.
4. Gratuity Calculation:
- The gratuity amount is typically calculated as 15 days of wages for every completed year of service, based on the last drawn salary.
- As you have completed over 13 years of continuous service, you would be entitled to gratuity for 13 years.
In conclusion, based on the provided information and the regulations under the Payment of Gratuity Act, you are eligible for gratuity, considering the adjustments made for the periods of leave without pay. The calculation for gratuity would be based on your last drawn salary and your service of 13 years. It is advisable to cross-verify these details with your HR department or legal advisor for specific calculations based on your employment terms and the applicable laws in Godhra, India.
From India, Gurugram
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