Knowledge Sharing | Unauthorised Absence & Gratuity EligibilityAn employee cannot be denied gratuity merely because he remained unauthorisedly absent for a period. Under Section 54 of the Code on Social Security, 2020, absence without leave is still treated as part of continuous service unless the employer has formally treated such absence as a break in service in accordance with the applicable Standing Orders, Rules or Regulations.

Prakash D Kagalwala13 Aug 2026 3 min read 44 views

Can an employee be denied gratuity because he was unauthorisedly absent for one year? An interesting question often arises in gratuity matters: If an employee has completed 5 years of service, but remained unauthorisedly absent for a substantial period—say one year—can the employer exclude that period and deny gratuity? The answer: Not automatically. Mere unauthorised absence from duty does not by itself constitute a…

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