Regarding Gratuity calculationsfds

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This discussion clarifies gratuity eligibility under the Payment of Gratuity Act, 1972, particularly concerning employees on sick leave. While completing five years of service is generally required, the key factor is 'continuous service'. If sick leave is certified or due to an accident on duty, it can count towards continuous service. However, significant uncertified absences, even if the employee remains on the company roll, may break the continuity of service and affect gratuity eligibility.

Rajnish

Rajnish (Querist)
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08 January 2020 Dear Sir/Madam,

I request you to please clear my query regarding gratuity calculation.
As per Payment of Gratuity Act of 1972, if employee having completed 5 and more years of service in a company then applicable for Gratuity
but my question is, in that period employee on sick leave i.e. approx 2 years then he is applocable for Gratuity?
please confirm my said said query.
your co-operation will be highly appreciated.

Regards
Rajnish

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

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08 January 2020 The employee should be in continuous period of service for 5 years for gratuity eligibility . In the referred case the employee was in sick leave. Please ensure the employer permit employee to take sick leave ( with loss of pay) and that employee is in the roll at the time of sick and his continuous period of service is 5 years , he is eligible for gratuity

Rajnish

Rajnish (Querist)
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08 January 2020 Dear Mr. A.S. Sundararajan,

Thanks for your reply of my query.
he is on muster roll, but he is absence
1st year - 70 days
2nd year - 166 days
3rd year - 130 days
4th year - 58 days
5th Year - 85 days
6th Year - 45 days
Total Days is 554 days
then eligible for Gratuity?
please confirm

Amol S Joglekar

Amol S Joglekar (Expert)
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23 January 2020 were you on the roll of company during all these years? if yes, then gratuity is required to be paid.

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

(Expert)
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23 January 2020 If the loss of pay is due to sickness certified by ESI / Government doctors or disability occured due to accident while on duty , the loss of pay will be considered as contionous service. Other wise there will be question of continuous service even though he is roll.

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