Let’s say after completing 9 yrs 5 months in an organisation, one employee was suspended for some charges for 3 days with LWP, after that he is still continuing in the same organisation. So will it affect his gratuity in any way? Will gratuity be calculated in two parts or in continuity and will it be counted as a break in the service?
This LWP of 3 days will not affect calculations of 240 days in the year. 9 years 5 months as such will be treated as 9 years.
Again, the suspension is of two types viz., suspension pending enquiry and punitive suspension.
In the case of suspension pending enquiry, after any punishment finally awarded in the disciplinary proceedings, the period of suspension would be regularised as duty or a portion of suspension undergone already can be ordered as punishment subject to the restriction on its length as mentioned in the service regulations/standing orders as the case be.
Only the punitive suspension would be treated as break in service as a disqualification for the purpose of calculation of continuous service for gratuity.
It’s to be noted again that only this unqualified period of service alone will not be taken into account for calculation of total service comprising of the period before and after the period of such punitive suspension which is a kind of what is called as " dies non " in service terms. A dies non will not be an effective break in service so as to affect the continuity of employment just before and after such break but will not be taken into account only for terminal benefits like gratuity, pension etc.
Therefore, in case of termination of your employment in future, only these three months would be excluded from your then entire service for the purpose of calculation of gratuity under the PGA, 1972.