This is Bharti.. I've just join this forum.. i've few requests to make.. I worked as a teacher in kindergarten section of full fledge SSC school for 20 yrs.. 1988-2008. i resigned from my job with couple of other collegues. one completed about 7 yrs as a clerck in school and the other about 8 yrs as a KG teacher. friends of mine have posted them a request along with the copy of Gratuity act but theres no response from the management of the school. verbally we get the massage that act does not show the word school is liable to pay gratuity. it seem if u resign from the job u resign from incentives.. we dont find any way out of this but to forgo our rights.. can any one pl. help
From India, Mumbai

Dear Paresh Bhai,

Could you please reply to my query regarding the Gratuity Act of 1972? As per my understanding, individuals working in railways, shops, factories, mines, etc., are eligible for gratuity after completing a minimum of 5 years of service. I have worked in a school in the kindergarten section for over 20 years. Upon resigning from my position as a teacher, my principal argues that since there is no mention of schools in the act, I am not eligible for gratuity. Despite my colleagues who resigned receiving their gratuities, she insists that it was an error made in the past and that the management will not repeat it by releasing my gratuity. She also contends that upon resignation, I have given up my incentives.

What are the chances of me receiving my gratuity? Any assistance from you would be greatly appreciated. If possible, kindly respond to me at gopalanis@hotmail.com. I would be grateful for your help in securing what is due to me.

Thank you.

From India, Mumbai

Dear,

It is hereby informed that a teacher is not considered an employee as per the definition laid down under section 2(e) of the Payment of Gratuity Act, 1972. Therefore, you are not entitled to any amount of gratuity under this Act.

Regards,
R.N. Khola

Labour Law & Legal Consultants
09810405361

From India, Delhi

Dear Mr. Khola,

Our school has already given gratuity to other colleagues of mine. Also, I ask for gratuity as my school collects Rs 1000/- for every new admission towards the teacher's gratuity fund. How come I'm not entitled? Could you please guide me?

Thank you.

From India, Mumbai

Dear BG,

In my opinion, you should approach the honorable civil court to seek proper remedy. First, serve a legal notice on the management through a civil advocate.

Regards,
R.N.Khola

(Labour Law & Legal Consultants)
09810405361

From India, Delhi

Dear Mr. Cyril, Arun, Paresh,

Your quotes are very good and useful. I would like to get clarification about some more points.

1. It is understood that if we employ contract persons continuously for 5 years, they shall become eligible for gratuity. But what if they are served with contract termination letters every year (i.e., on completion of 12 months)?

It has been noticed that certain organizations engage persons on contract for only 11 months. But these 11 months also cross the 240-day criteria. Then is there any use of restricting the contract to 11 months? Also, will it work if a break in service is given for 2 or 3 days?

2. Some companies have a practice of engaging people for 6 months then give a break of 3 days (3 days they are not allowed to work) and then they are taken back and will work for 1 year. I think this will surely prevent eligibility for gratuity. In this case, they engage people only for 4 years. Since they are restricting the total years to 4, we need to consider that even if the contract is for 6 months, completion of 5 years is a real matter. Am I correct?

In such cases, is it necessary to issue contract letters, or are attendance registers alone enough to prove that employees are not in continuous service for 1 year?

3. Another point is that in case of death or disablement of an employee, 5 years of continuous service is not necessary. Then what is the minimum requirement? Shouldn't he complete 1 year of continuous service?

Also, could any of you cite any court orders in the case (court direction to pay gratuity to contract employee) which Mr. Cyril has mentioned?

Thank you,

Seema T.K.



Dear Mr. Cyril, Arun, Paresh,

Your quotes are very good and useful. I would like to get clarification about some more points.

1. It is understood that if we employ contract persons continuously for 5 years, they shall become eligible for gratuity. But what if they are served with contract termination letters every year (i.e., on completion of 12 months)?

It has been noticed that certain organizations engage persons on contract for only 11 months. But these 11 months also cross the 240-day criteria. Then is there any use of restricting the contract to 11 months? Also, will it work if a break in service is given for 2 or 3 days?

2. Some companies have a practice of engaging people for 6 months, then give a break of 3 days (3 days they are not allowed to work), and then they are taken back and will work for 1 year. I think this will surely prevent eligibility for gratuity. In this case, they engage people only for 4 years. Since they are restricting the total years to 4, we need to consider that even if the contract is for 6 months, completion of 5 years is a real matter. Am I correct?

In such cases, is it necessary to issue contract letters, or attendance registers alone are enough to prove that employees are not in continuous service of 1 year?

3. Another point is that in the case of death or disablement of an employee, 5 years of continuous service is not necessary. Then what is the minimum requirement? Shouldn't he complete 1 year of continuous service?

Also, could any of you cite any court orders of the case (court direction to pay gratuity to a contract employee) which Mr. Cyril has mentioned.

Thank You,

Seema T.K.



4. PAYMENT OF GRATUITY:

(1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years:

(a) on his superannuation, or

(b) on his retirement or resignation, or

(c) on his death or disablement due to accident or disease.

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

Provided further that in the case of death of the employee, gratuity payable to him shall be paid to his nominee or, if no nomination has been made, to his heirs, and where any such nominees or heirs are minors, the share of such minors shall be deposited with the controlling authority who shall invest the same for the benefit of such minors in such bank or other financial institution, as may be prescribed, until such minors attain majority.

Explanation: For the purposes of this section, disablement means such disablement as incapacitates an employee for the work which he was capable of performing before the accident or disease resulting in such disablement.

(2) For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days' wages based on the rate of wages last drawn by the employee concerned.

Provided that in the case of a piece-rated employee, daily wages shall be computed on the average of the total wages received by him for a period of three months immediately preceding the termination of his employment, and, for this purpose, the wages paid for any overtime work shall not be taken into account.

From India, Hyderabad

Dear Mr. Bobby,

I'm Bharti. I've been hearing various suggestions on gratuity laws. Could you please let me know if teachers are entitled to gratuity? I have come across conflicting information. Some sources indicate that the law has been revised to include teachers for gratuity, however, my principal has refused to pay me by claiming that I resigned after 20 years of service and she is not obligated to provide gratuity. I have sent her a legal notice, but she still refuses to pay. What are the chances of me receiving the gratuity?

Thank you.

From India, Mumbai

hi seniors , I have a doubt if the employee is entitled for gratuity, who is working in a Project work and the project is not yet completed, i.e Project is in commissioning state. Kindly reply
From India, Guwahati

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