Payment of gratuity act

By paying the salary for those 6 months (even after a legal dispute or settlement), the company has effectively negated the break. Receiving salary for that period means the law views the employee as being "in service" during that time.

If a company forces a break to avoid statutory liabilities (like gratuity or provident fund), it is considered an unfair labor practice.Section 2A of the Gratuity Act states that service is continuous even if there is an interruption due to "cessation of work not due to any fault of the employee." Since the employee was not at fault and the company eventually paid up, the "break" is legally void.

The ALC's refusal is likely based on the fact that an order has already been passed on the same "subject matter. The Deputy CLC originally ruled that the 2 years were excluded due to a "break in service." Since you didn't appeal that order within the statutory timeline (usually 60 days), the ALC views the case as "closed." Applying for the same thing again is seen as a violation of the legal process.

For relief, you  cannot simply "re-apply" as if it’s a new claim. You must challenge or seek a review of the previous order using the evidence of the salary credit.

The Controlling Authority has the power to review their own order if there is an "error apparent on the face of the record" or if new evidence has come to light that was not available at the time of the hearing. 

If you are still within the timeframe (or can show "sufficient cause" for a delay), you can appeal to the Regional Labour Commissioner (Appellate Authority).

Sir, you explained the matter absolutely perfectly. The ALC had said the same thing. I had gone to request him for a REVIEW. He denied in toto.  He told me that it cannot be done now, and told me (after a heating argument) that if I want to do something, file a new claim. Please advise — should I go for a new claim?"

Very well explained, opined and advised by learned expert Mr. T Kalaiselvan, which I endorse.

You are entitled for full 7+2 years gratuity if the absence of 6 months has been regularised by the employer.

If you are aggrieved by the order passed by ALC you may move to High Court and challange the order. 

In the given facts, the querist has the option to seek judicial review.