If an employee takes long leaves in a service year (granted leave for 1 month but does not report for more than 3 months), is he entitled to gratuity for that year? If he is reinstated, will this be considered as a fresh joining?
From India, Mumbai
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From India, Mumbai
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Dear Vinay, may I ask you to go through Sec. 2-A of the PGA, 1972, which defines the term 'continuous service' for the purpose of computation of gratuity under the Act? Any period of unauthorized absence declared as a break in service by the employer as per the provisions of service regulations or standing orders of the establishment should be excluded from the calculation of continuous service for the purpose of gratuity.
Overstaying of leave is considered unauthorized absence. Unless such a period is declared as a break in service as stated above, it must be taken into account for the computational purpose of statutory gratuity. Unsanctioned long leave taken by the employee does not automatically sever the tie of the employer-employee relationship. Therefore, rejoining after such extended unauthorized leave cannot be treated as a fresh joining as if a sequel to a fresh appointment.
From India, Salem
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6108Overstaying of leave is considered unauthorized absence. Unless such a period is declared as a break in service as stated above, it must be taken into account for the computational purpose of statutory gratuity. Unsanctioned long leave taken by the employee does not automatically sever the tie of the employer-employee relationship. Therefore, rejoining after such extended unauthorized leave cannot be treated as a fresh joining as if a sequel to a fresh appointment.
From India, Salem
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Gratuity-Contin uous Service-countin g broken period with same employer-Madras HC Judgment.docx
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