Understanding Gratuity Eligibility in the Fifth Year with Leave Without Pay (LWP)

Dear all,

I have completed 5 years in one company, and in the first 4 years, I worked for 240 days. However, in the 5th year, I took leave without pay (LWP) for the entire year due to personal problems. I would like to inquire if I am still eligible for gratuity. Can you please assist me in resolving this issue?

Is LWP calculated as 240 days in the 5th year or not?

Thank you.

No, you are not eligible for gratuity because you have to complete at least 240 working days during the calendar year.

Globalflick Innovation Pvt Ltd

No, you have not completed 240 days in the 5th year, so you are not eligible.

If in the 5th year, your annual contribution to the LIC Fund is paid to LIC or any other approved agency, then you are eligible for gratuity if your Leave Without Pay (LWP) is approved by your company.

Practically, how can your company keep your name on their muster roll when you have been on LWP for a year?

If his lapse in the fifth year is not treated by management as a break in service as per Section 2A(1) of the Gratuity Act, the position will be different.