diff --git a/erpnext/payroll/doctype/gratuity/gratuity.py b/erpnext/payroll/doctype/gratuity/gratuity.py
index 8cb804db6fa3..31a6af3a0776 100644
--- a/erpnext/payroll/doctype/gratuity/gratuity.py
+++ b/erpnext/payroll/doctype/gratuity/gratuity.py
@@ -242,7 +242,11 @@ def get_salary_structure(employee):
 		order_by = "from_date desc")[0].salary_structure
 
 def get_last_salary_slip(employee):
-	return frappe.get_list("Salary Slip", filters = {
+	salary_slips = frappe.get_list("Salary Slip", filters = {
 			"employee": employee, 'docstatus': 1
 		},
-		order_by = "start_date desc")[0].name
+		order_by = "start_date desc"
+	)
+	if not salary_slips:
+		return
+	return salary_slips[0].name
diff --git a/erpnext/payroll/doctype/gratuity/test_gratuity.py b/erpnext/payroll/doctype/gratuity/test_gratuity.py
index 7daea2da474e..6c3b6fbae58e 100644
--- a/erpnext/payroll/doctype/gratuity/test_gratuity.py
+++ b/erpnext/payroll/doctype/gratuity/test_gratuity.py
@@ -24,6 +24,11 @@ def setUp(self):
 		frappe.db.sql("DELETE FROM `tabGratuity`")
 		frappe.db.sql("DELETE FROM `tabAdditional Salary` WHERE ref_doctype = 'Gratuity'")
 
+	def test_get_last_salary_slip_should_return_none_for_new_employee(self):
+		new_employee = make_employee("new_employee@salary.com", company='_Test Company')
+		salary_slip = get_last_salary_slip(new_employee)
+		assert salary_slip is None
+
 	def test_check_gratuity_amount_based_on_current_slab_and_additional_salary_creation(self):
 		employee, sal_slip = create_employee_and_get_last_salary_slip()