Gratuity
sekar
(Querist) 15 October 2013
This query is : Resolved
I worked for total 6+years. I was sanctioned leave without pay for about 23 months.Under gratuity Act 5 years continuous service is necy. Does leave without pay count for continuous service.Then, am I eligible to get gratuity @15 days per year??In gratuity is DA and HRA counted?
pl advise. thanks.
Kumar Doab
(Expert) 15 October 2013
1. Does leave without pay count for continuous service.I was sanctioned leave without pay for about 23 months.
Yes.
2. Then, am I eligible to get gratuity @15 days per year??
Yes.
@ Basic+DA ( VDA) if applicable)….
Although company would love to pay by formulae of calculation gratuity, employee is entitled to get entire payment disbursed by LIC or FI from which company has availed insurance………………… or approved trust for management of gratuity ( that would also earn interest/ROI) .
The amount disbursed by LIC would include interest/ROI………………………….and should be more than amount calculated by formulae of calculation gratuity.
Employer can not and therefore should keep a penny from amounts received from LIC or FI ………………… or approved trust
3. In gratuity is DA and HRA counted.
Yes DA is counted.
And ( VDA) if applicable)….
Rajendra K Goyal
(Expert) 15 October 2013
Well advised by the expert, nothing more to add.
Isaac Gabriel
(Expert) 16 October 2013
23 months leave period could be taken as service for gratuity if specific mentioning is made in the leave sanction order.Normally exta-ordinary leave without pay cannot be treated as service.If the employer is linked under the group gratuity scheme of the LIC,you are eligible for the propotionate gratuity as worked out by the LIC.
Raj Kumar Makkad
(Expert) 16 October 2013
I do agree with the advice of Isaac Gabriel.
Sudhir Kumar, Advocate
(Expert) 18 October 2013
leave without pay does not per-se interrupt service (unless in Govt sector while break in service is awarded in terms of FR-17A or its equivalent rule in PSU /state Govt).
Leave without pay period, without Medical Certificate is not a part of service for the purpose of pension or gratuity.
Kumar Doab
(Expert) 18 October 2013
The author of the post Mr. Sekar may clarify who is the employer: Govt, private establishment, PSU etc and may go thru the leave and Gratuity rules.............
