Wheteher Gratuity is payable to a teacher employed in a private institution governed by CBSE board?
It is important to know whether the definition of employee under the Gratuity Act covers teachers or not as they are not in the Managerial or Adminitrative Capacity?
From United States
It is important to know whether the definition of employee under the Gratuity Act covers teachers or not as they are not in the Managerial or Adminitrative Capacity?
From United States
Dear Mr.Pradeepverma
The Payment of Gratuity Act was held applicable to schools and the non-teaching staff are held to be entitled to get gratuity.Prior to the amendment to section 2(e) of the PG Act only teachers were held not eligible to get gratuity under the PG Act whereas non teaching staff were held to be eligible to get gratuity under the PG Act. Section 2(e) of the Payment of Gratuity Act which defines the term "employee" has been amended by Act 27 of 2009. This amendment has come into force with effect from 3-4-1997. After amendment the section 2(e) reads as follows:
"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 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."
This amendment was brought in with the specific purpose of bringing teachers within the scope of applicability of the Payment of Gratuity Act. The date from which this amendment becomes effective is relevant and 3-4-1997 is the date on which the Honourable Supreme Court of India held that the teachers are not employees as defined under the Payment of Gratuity Act and are not therefore entitled to get gratuity.
Please consider the phrase "in any kind of work manual or otherwise" in the definition. This phrase has been interpreted to include teaching also. Of course, the teachers are not entitled to get gratuity under the Payment of Gratuity Act if they hold a post under the Central Government or the State Government or if they are governed by any other Act or rule for the purpose of getting gratuity.
With regards
From India, Madras
169The Payment of Gratuity Act was held applicable to schools and the non-teaching staff are held to be entitled to get gratuity.Prior to the amendment to section 2(e) of the PG Act only teachers were held not eligible to get gratuity under the PG Act whereas non teaching staff were held to be eligible to get gratuity under the PG Act. Section 2(e) of the Payment of Gratuity Act which defines the term "employee" has been amended by Act 27 of 2009. This amendment has come into force with effect from 3-4-1997. After amendment the section 2(e) reads as follows:
"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 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."
This amendment was brought in with the specific purpose of bringing teachers within the scope of applicability of the Payment of Gratuity Act. The date from which this amendment becomes effective is relevant and 3-4-1997 is the date on which the Honourable Supreme Court of India held that the teachers are not employees as defined under the Payment of Gratuity Act and are not therefore entitled to get gratuity.
Please consider the phrase "in any kind of work manual or otherwise" in the definition. This phrase has been interpreted to include teaching also. Of course, the teachers are not entitled to get gratuity under the Payment of Gratuity Act if they hold a post under the Central Government or the State Government or if they are governed by any other Act or rule for the purpose of getting gratuity.
With regards
From India, Madras
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Gratuity Act-Teachers-Ma dhya Pradesh.docx
Payment of Gratuity Act, 1972 & The Rules.ppt