In today's day and age of long working hours and mundane lifestyle, many employees often take a decision to break the monotony, and move away from the activities of their daily lives.
In today's day and age of long working hours and mundane lifestyle, many employees often take a decision to break the monotony, and move away from the activities of their daily lives. Employees often take long leave from office in order to achieve their personal goals such as higher education, learning/upgrading skills or travelling, and such leaves are often termed as Sabbatical Leave. The duration of such sabbatical leaves may vary from one individual to the other as also the organisations. Often, sabbatical leaves are taken for a period of six months to about one year depending on the purpose for which one goes on a sabbatical.
Many companies have a provision for leaves without pay. However, only a few companies have a provision for sabbatical leaves. Often, we have come across the question whether the sabbatical period during which an employee was on leave would be considered as a part of continuous/uninterrupted service for the purpose of payment of gratuity or whether such period will be excluded for the purpose of payment of gratuity and would therefore be considered as a break in service.
According to Section 4 of the Payment of Gratuity Act, 1972 ("Act"), "Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service of not less than five years - (a) on his superannuation, or (b) on his retirement or resignation, or on his death or disablement due to accident or disease…"
The term 'continuous service' plays an important role in the aforesaid definition and a plethora of judgments regarding the interpretation of the term have cemented the current legal position with respect to payment of gratuity.
This story is from the August 2018 edition of Human Capital.
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This story is from the August 2018 edition of Human Capital.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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