Leave without pay will affect gratuity.

Is Lop considered for Gratuity?

Unless the individual has actually worked in the company for 240 days in a year he is not entitled for gratuity. 3) Leave Without Pay, being sanctioned leave will be treated as part of 240 days for calculating eligibility for Gratuity.

Will loss of pay affect Gratuity?

A 1984 Amendment to the Payment of Gratuity Act provides a definitive answer. The Amendment states that interrupted service due to sickness, accident, leave or any other kind of cessation of work, not due to a fault of the employee would still count as a part of the employee's 'continuous service'.