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Dear Sir,

I retired from an unaided engineering college in Mumbai after working for 17 years.

1. Am I eligible for gratuity?
2. If yes, how much should I receive?
3. If the college is not providing gratuity, what steps should I take?

Thanks

UPDATE: After referring to the Asst. Labour Commissioner with the proper case, my college paid gratuity with interest. This information is for everyone's knowledge. Thanks. My discussion can be closed.

From India, Delhi
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Dear V.J. MANDRAWADKER,

Teachers are not eligible to receive any gratuity payment under the Payment of Gratuity Act, 1972 as they are not considered under the definition of an employee in this Act.

R.N. Khola

From India, Delhi
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Dear Mr. R.N. Khola,

Thank you for your reply. Last year, some bill regarding gratuity was to be amended. I am curious about the progress of this action. In Mumbai, some private colleges are paying gratuity. Additionally, there is a letter from D.T.E. Maharashtra instructing to pay gratuity, along with the Aurangabad court decision to adhere to the circular.

Please provide clarification.

V.J. Mandrawadker

From India, Delhi
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Dear V.J. MANDRAWADKER,

Of course, the matter is under consideration. It is good that some private colleges are paying gratuity to the teachers. They must have included this term in their terms and conditions of appointment or they may have their policy for this section. I do not have a copy of the letter or judgment, and if you have it, please go through it and utilize it.

R.N. Khola

From India, Delhi
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Dear Sir,

I served as a teacher in a self-financed engineering college in Haryana for about 11 years continuously without any breaks. The college's service conditions state that a permanent employee is entitled to gratuity as per the norms of the Haryana Government. I have now taken up a position as a lecturer in a Government college in Haryana.

I have applied for gratuity for my 11 years of service with my previous employer in accordance with the Haryana Government norms. However, my current employer is stating that I am not eligible because they provide gratuity only for a minimum of 15 years of continuous service. I am having difficulty understanding this rule of my current employer because, as per the Haryana Government norms, there is a requirement of at least 5 years of continuous service.

Please provide your comments so that I can understand and potentially benefit from the gratuity I am entitled to.

Thank you.

From India, Bhiwani
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Anonymous
Dear Sir,

There is no confusion about applicability of Gratuity to teachers (& the approval of teachers by Boards or Universities doesn't matter) as now Gratuity is applicable to Teacher ( employee) worked continuously for at least five years.

The Central Government in its wisdom tabled a Bill in Parliament [BILL No: 90 of 2007] on 7th September 2007 proposing to widen the definition of "employee", in order to extend the benefits of gratuity to the teachers and therefore to amend the Section 2[e] of the Act.
The proposed amendment sought to delete the words, "skilled", "semi-skilled" or "unskilled", “supervisory”, “technical” or “clerical work” and classify the work in only two categories “manual or otherwise”.
'(e) "employee" means any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop or other establishment, to which this Act applies, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity;'.
The proposed Bill was passed by both the Houses and the presidential assent was received on 31st December 2009. The gazette Notification was also published on the same date. Hence now it is settled that the teachers are beneficiaries of the provisions of the Payment of Gratuity Act, 1972. In fact the Act by amending Section 13 has also nullified the effect if any due to judgement of the Hon’ble Supreme Court had on payment of gratuity.

For details, pls download attachment or visit the link given below :

http://www.edulegal.in/aop.html

From India, Pune
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Did you know teachers in India are eligible for a gratuity payment by law? Share this with every teacher you know.

For details, visit the following link: http://www.womensweb.in/2014/09/dear...your-gratuity/

From India, Pune
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Dear Sir,

There is no confusion about applicability of Gratuity to teachers (& the approval of teachers by Boards or Universities doesn't matter) as now Gratuity is applicable to Teacher ( employee) worked continuously for at least five years.

The Central Government in its wisdom tabled a Bill in Parliament [BILL No: 90 of 2007] on 7th September 2007 proposing to widen the definition of "employee", in order to extend the benefits of gratuity to the teachers and therefore to amend the Section 2[e] of the Act.

The proposed amendment sought to delete the words, "skilled", "semi-skilled" or "unskilled", “supervisory”, “technical” or “clerical work” and classify the work in only two categories “manual or otherwise”.

'(e) "employee" means any person (other than an apprentice) who is employed for wages, whether the terms of such employment are express or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop or other establishment, to which this Act applies, but does not include any such person who holds a post under the Central Government or a State Government and is governed by any other Act or by any rules providing for payment of gratuity;'.

The proposed Bill was passed by both the Houses and the presidential assent was received on 31st December 2009. The gazette Notification was also published on the same date. Hence now it is settled that the teachers are beneficiaries of the provisions of the Payment of Gratuity Act, 1972. In fact the Act by amending Section 13 has also nullified the effect if any due to judgement of the Hon.Supreme Court had on payment of gratuity.

For details, pls visit the link given below :

edulegal

Also go through following details to cross check the same:

Did you know teachers in India are eligible for a gratuity payment by law? Share this with every teacher you know.

For details visit the following link:

http://www.womensweb.in/2014/09/dear...your-gratuity/

From India, Pune
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Did you know teachers in India are eligible for a gratuity payment by law? Share this with every teacher you know.

The best gift we can give our Gurus is to make them aware of their financial rights as per the laws.

Since the laws were amended in 2009, teachers are eligible for Gratuity. Its a lump sum payout and a kind of a loyalty bonus which is given on retirement or on leaving the job to overcome loss of income. The teachers and educational institutes came under the Payment of Gratuity Act in 2009, when our government had amended the act whereby the meaning of an employee was amended in such a way to include teachers also.

The definition of an establishment was also broadened to include educational institutions under the Act. The amendment also said that the teachers should be paid gratuity dues from April 3, 1997 onwards.

But thats the law. The schools and education institutions may not voluntarily abide by these rules as its a huge cash outgo for them. So every teacher ought to know how he or she can claim this financial right.

1. The eligibility for gratuity: The first criterion is that one must have served in an institution for five continuous years before resigning or on retirement. The school or college must have employed more than 10 people in the previous financial year.

2. The Gratuity Figure: Take note of two numbers. The basic salary and the dearness allowance in the year of leaving job or on retirement. Also calculate the number of years (take six months and above as one year) in the service. This is how the gratuity amount is arrived at:

Your monthly salary (Basic and dearness allowance) multiplied by Number of years of service (since Apr 3 1997) x 15/26

3. When does it become due: On retirement from school or college, or on leaving job after 5 years of service or on death or disablement.

4. How to apply for gratuity: The onus is first on the school to give it as and when its due. If that doesnt happen, a written application within 30 days along with Form I should be given to the school or college. If one is applying after several years of retirement or resignation, be prepared for a legal battle.

5. Is there is limit on the amount of gratuity: The maximum amount payable under gratuity is upto Rs 10 lakh. Any amount above this will be taxable.

6. How do fight for the right: Teachers ought to arm themselves with various court judgments in which institutions have been directed to pay gratuity dues to the teacher associations.

a. Karnataka High Court Decision in Favor of KarnatakaUnaided Schools Managements Association (KUSMA)

b. Supreme Court judgement in favour of Association of College and University Superannuated Teachers, Maharashtra

Originally published here.

Pic credit: GunjanKarun (Used under CC license)

From India, Pune
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