09 August 2010
Sir, Whether school teachers are covered under gratuity act. As per my studies they are not covered but if there is any expert comment on the issue
09 August 2010
The Central Government extended the provisions of Payment of Gratuity Act, 1972 to the educational institutions employing 10 or more persons vide the Ministry of Labour and Employment Notification No. S.O. 1080 dated 3 April 1997. The Notification came into force w.e.f 19.4.1997, date when it was published in the Gazette of India. In an appeal filed before the Supreme Court in the case of Ahmedabad Private Primary Teachers' Association v. Administrative Officer and others, AIR 2004 SC 1426, the Apex Court in its judgment dated 13.1.2004 ruled that teachers are not entitled to gratuity under the payment of Gratuity Act, 1972 in view of the fact that teachers do not answer description of definition of “employee” under section 2 (e) of the Payment of Gratuity Act, 1972. The ruling also, inter alia, states that non-use of wide language similar to definition of “employee” as is contained in section 2(f) of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 reinforces the conclusion that teachers are not covered in the definition.
However, certain states have made thereon law based on the payment of Gratuity Act,1972 so as to provide gratuity benefits to private school teachers as well.
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