Sabbatical Leave comes under Continuous Service for Gratuity

Query :- 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.

Answer

For answering to this query we must first take below exhibit legislative provision & supporting

1. ‘Continuous service’ under Section 2-A(1) of the Payment of Gratuity, 1972 express that “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 order, 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.”
2. Refer
• The Hon’ble Supreme Court of India in the case Jeewanlal (1929) Ltd. and Ors. Vs. Appellate Authority under the Payment of Gratuity Act and Ors. AIR1984SC1842
• The Hon’ble Madras High Court in the case of H. Ramappa S/o Hanumanthappa and Ors. vs. The General Manager, Sri Yellamma Cotton Woolen and Silk Mills and Ors. 2008(117)FLR863

It is lucid that in this event the employee was absent from the duty due to Sabbatical Leave & it was permitted by the Employer. The said employee shall be entitled to the benefit of gratuity unless the Employer has passed an order treating such absence without leave as a break in service in accordance with the Standing Orders of Employment applicable to the employee.

Payment of Gratuity, 1972