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Vinod (Manager)     19 October 2012

Gratuity rules for self financing institutes

Dear Sir

I served as a Assistant Professor at a Self Financing Institute affiliated to GGSIPU Delhi. I resigned from the Institute in JUne 2011. Please let me know whether Self Financing Institutes come under Law of Gratuity, EPF was being deducted from the salary every mnoth. It will be great if you can share some information relaring to this

 

Please spend some time to help me, i sent a notice to the institute regarding payment of gratuity, but their reply says self financing institutes are not covered under Gratuity Law

 

Thanks

Vinod



Learning

 3 Replies

Kumar Doab (FIN)     19 October 2012

 

-----You may submit FormI under proper acknowledgment to the good office of your appointing authority. You may also submit a copy under proper acknowledgment to the Controlling Authority of Gratuity which may be ALC in your case at your location.

If your employer has declined to pay gratuity in writing you may enclose copy with covering letter to controlling authority.

 

Section: 7
Determination of the amount of gratuity.

(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing, to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.

(4)

(a) If there is any dispute as to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.

(b) Where there is a dispute with regard to any matter or matters specified in clause (a), the employer or employee or any other person raising the dispute may make an application to the controlling authority for deciding the dispute.]

---- It is felt that teachers in unaided institutions at primary, secondary, school college level have been made eligible.

The schools under the control of local bodies were covered under the Act with effect from 8.1.1982. The employees of the Government schools are already entitled to gratuity under the extant rules of the Government governing gratuity and pension but the employees of the private schools were having no legal entitlement to gratuity. As gratuity is an old age retiral social security benefit, it was considered desirable to extend the benefit of the Payment of Gratuity Act, 1972 to all employees employed in all educational institutions having ten or more persons. Accordingly, 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.The definition of “employee” under section 2 (e) of the Payment of Gratuity Act, 1972, was modified and the Government has made the amendment with retrospective effect from April 3, 1997.

 

Gazette Notification is enclosed in this thread.

Also enclosed is the Judgment of 2012 of Bombay HC delivered citing SC judgments and should help you.

Bombay High Court decision as recent as Feb, 2012:

The President/Secretary vs Shri Pradipkumar S/O ... on 21 February, 2012

 

“There is no escape but to hold that a Teacher is an 'employee' within the meaning of Section 2(e) of the said Act and hence the provisions of the said Act are applicable.

There is no challenge to the judgments and orders passed by the Authorities below on merits. Hence, no fault can be found with the view taken by the Authorities below.”

 

IN this judgment Learned judges of the honorable have referred to Payment of gratuity Act (Amendment ) 2009, introducing Sec 13A, judgment of supreme court in appeal filed by Ahmadabad Private Primary Teachers’ Association, Ministry of Labour & Employment vide number S.O.1080,dated the 3rd   day   of   April,   1997 and has left nothing to speculations. In fact all speculations have been put to rest.

You may go thru a very interesting thread initiated by employee at following link:

https://www.lawyersclubindia.com/forum/Gratuity-for-private-engineering-college-66866.asp#.UIFs_e-bcwc

 

Discussion > Labour & Service Law > Gratuity > Gratuity for private engineering college   Unanswered ThreadsPost New Topic

Kumar Doab (FIN)     19 October 2012

Attached.


Attached File : 168309118 gartuity gazette notification amendment 2009.pdf downloaded: 235 times

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