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Shweta (Lawyer)     07 May 2009

Can 1 yr unpaid leave be calculated while dispersing Gratuit

While calculating gratuity, does the period of unpaid leave of absence gets calculated for considering gratuity i.e. if an employee has been working for 3 years, then took unpaid leave of absence for 1 year and then he joined back & completed 1 year of tenure service; is the employee eligible for gratuity or he still has to work for another 1 year to be eligible for gratuity? Unpaid leave of absence tenure is not calculated for considering gratuity period.


Adv. Shweta Prabhu


 5 Replies

H. S. Thukral (Lawyer)     07 May 2009

To understand the problem we have to read the definition of continuous service in section 2A of the PGA

An employee shall be said to be in continuous service for a period if he has, for that period, been in uninterrupted service, including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of which an order treating the absence as break in service has been passed in accordance with the standing orders, rules or regulations governing the employees of the establishment), lay-off, strike or a lock-out or cessation of work not due to any fault of the employee, whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act;
In the facts of the case mentioned by you it appears that the employee is on unpaid leave but with an approval and no such order has been passed treating this period as unauthorised absence. Hence the period is to be counted in reckoning the sevice of 5 years eligibility.


mahesh pandey (Vice President)     09 May 2009

Dear friend,

ur query related 2 gratuity is perfectly understood from the provisions of Payment of Gratuity Act,1972, u/s 2A of the said Act the term CONTINIOUS SERVICE has been defined.

As understood the unpaid leave has been approved & therefore considered as continious service for the purpose of calculating gratuity , hence in des  case employee has not 2 work for another  Yr for completing minimum service of 5 yrs to be entitled 2 receive gratuity.


mahesh pandey

Vishal (Asstt. Manager)     13 May 2009

if he was  absent with information then only he will be eligible



Dale Cash   18 February 2020

There are many people who are familiar with labor and services law but most people not even know this. You will know these laws in uk dissertation which provide the detail and guidance against the labor and services law.

Isaac Gabriel (Advocate)     03 August 2020

Unless specifically excluded gratutity to be paid

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