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PBS KUMAR (HR - PROFESSIONAL)     16 November 2013

Is the private school teachers applicable for gratuity ?

Dear Experts,

Is the Private School Teachers are eligible for GRATUITY under Payment of Gratuity Act ? If so kindly supply the Gazette Notification. Urgent please.

Regards,

 

PBS KUMAR



Learning

 21 Replies

Kumar Doab (FIN)     16 November 2013

Yes.

Sec: 2(e) was inserted to facilitate it.

[ASSENTED TO ON 31ST DECEMBER, 2009] 

(ACT NO. 47 OF 2009) 

 

THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2009 

 

 

There are many judgments as well.


Attached File : 768133865 gazette notification amendment to gratuity act 2009 gratuity%20notification%20amendment%20in%20definition%20of%20employees.pdf downloaded: 3318 times
1 Like

PBS KUMAR (HR - PROFESSIONAL)     16 November 2013

Dear Kumar Doab ji,

The attachment is unable to download it . will you please send it to my mail id : pbs_kumar@rediffmail.com

 

 

Regards,

PBS KUMAR

Kumar Doab (FIN)     16 November 2013


Attached File : 981769190 the payment of gratuity amendment 2009 def of employee in sec 2e.pdf downloaded: 1059 times

Kumar Doab (FIN)     16 November 2013

Attached the notification.


Attached File : 981769190 gratuity.pdf downloaded: 838 times

PBS KUMAR (HR - PROFESSIONAL)     17 November 2013

Dear Kumar Doab ji,

 

I read out the above attachment contents, but it was no where mentioned that Teachers are eligible for Gratuity. Please confirm my about said question.

Regards,

PBS KUMAR

Kumar Doab (FIN)     17 November 2013

Dear Mr. PBS Kumar,

You are welcome.

 

>> The Payment of Gratuity (Amendment) Bill, 2009 as passed by both the Houses of Parliament has amended the definition of ‘employee’ contained in the Payment of Gratuity Act, 1972 for covering teachers in private institutions.

Refer to the current definition of Sec: 2(e)…………..

 

It is applicable with retrospective effect from 1997.

There are many judgments delivered after the amendment.  

 

>> You may go thru the commentary in the BILL that is self explanatory:

THE PAYMENT OF GRATUITY (AMENDMENT) BILL, 2007

  Presented to Lok Sabha on 26.2.2008

 Laid in Rajya Sabha on 26.2.2008

https://www.prsindia.org/uploads/media/1196228046/scr1204095937_Payment_of_Gratuity.pdf

3. The Bill seeks to extend the benefits of gratuity to the teachers in the country by amending the definition of ‘employee’ under Section 2(e) of the Payment of Gratuity Act, 1972.

4. The Committee sought written information regarding the origin of this Bill from the nodal Ministry, i.e. the Ministry of Labour and Employment. They submitted that the Central Government through a notification in the year 1997 extended the benefits of the Act to all educational institutions employing ten or more persons. However, subsequent to the Apex Court ruling in 2004, the teachers were excluded from the purview of the definition of the term ‘employee’ as enshrined in the Act. In order to overcome this situation, the Government propose to amend the Act and broad base the definition of the

term ‘employee’ so as to bring the teachers of the private educational institutions within the purview of the Act.

 

BACKGROUND OF THE PRESENT PROPOSAL

14. The Payment of Gratuity Act, 1972 was made applicable to local bodies with effect from

8.1.1982. Therefore, the schools under the control of local bodies were covered under the Act with

effect from 8.1.1982 itself. However, the employees of other educational institutions were facing

denial of gratuity as they were not covered under the Act. 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.

 

 

15. 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.

 

17. In this context , para 26 of the said judgment is quoted as follows:-

 

“Our conclusion should not be misunderstood that teachers although engaged in very noble

profession of educating our young generation should not be given any gratuity benefit. There are

already in several States separate statutes, rules and regulations granting gratuity benefits to

teachers in educational institutions which are more or less beneficial than the gratuity benefits

provided under the Act. It is for the Legislature to take cognizance of situation of such teachers in

various establishments where gratuity benefits are not available and think of a separate legislation

for them in this regard. That is the subject matter solely of the Legislature to consider and decide”.

 

18. Keeping in view the observations of the Supreme Court as mentioned above the definition

of “employee” under section 2(e) in the existing Act has been proposed to be widened in keeping

with the spirit of the Act.

 

 

 

36………………….. To nullify the effect of the

verdict of the Apex Court, it has been proposed to widen the definition of ‘employee’ in order to

extend the benefits of gratuity to the teachers by amending the same……………………

The

Committee, therefore, call upon the Government to make the law applicable with retrospective

effect, i.e. from the date of notification in the year 1997. This will provide the needed succour as

well as justice to all those affected persons who were denied their rightful benefits due to some

technical flaw/legal lacuna in the definition of the term ‘employee’ as contained in Section 2 (e)

of the Payment of Gratuity Act, 1972.

 

 

 

>> Bombay High Court

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

 

https://indiankanoon.org/doc/117816025/?type=print

 

7…………………….Taking a note of such

observation, the Legislature has amended the definition of 'employee' under Section 2(e) of the said Act with

effect from 3-4-1997,

 

which is in tune with the observations made in para 25 of the judgment of the Apex

Court. The Objects and Reasons of such amendment make the intention of the Legislature very clear to apply

the provisions of the Payment of Gratuity Act to the Teachers also. The amended definition is wide enough to

 

 

cover the category of the Teachers for the purpose of applicability of the said Act. 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.

 

 

Hope this shall suffice.

I am sending a PM to you. If possible kindly revert.



Attached File : 981933292 scr1204095937 payment of gratuity (2).pdf, 981933292 bombay high court the president secretary vs shri pradipkumar on 21 feb 2012.doc downloaded: 818 times
1 Like

Sudhir Kumar, Advocate (Advocate)     31 January 2014

well elaborated by Mr Kumar Doab

Vikram Sharma   12 January 2017

Hi ,

I'm working with a Private Educational Institute from last 1.5 yrs. Recently my employer has started deducting gratuity from my salary .Though I know Gratuity is an act of gratitude given by employer to its employees for completing certain number of years of service .

Please suggest / comment .

Rgds,

Vikram

 

Kumar Doab (FIN)     12 January 2017

Dear LCI Querist @ Vikram Sharma,

Gratuity is without any cost to employee.

Does your employer show this deduction in salary slip?

Ritesh Maity (Labour Law Advocate)     12 January 2017

Originally posted by : Vikram Sharma
Hi ,

I'm working with a Private Educational Institute from last 1.5 yrs. Recently my employer has started deducting gratuity from my salary .Though I know Gratuity is an act of gratitude given by employer to its employees for completing certain number of years of service .

Please suggest / comment .

Rgds,

Vikram

 

Your knowledge is absolutely correct. 

Employer cannot deduct any amount in the name of gratutity from your salary unlike ESI/ PF. 

If you have documentary evidence of such deduction, immediately ask your employer to stop such deduction. Make sure that you keep acknowledgement of each and every communication. 

Kumar Doab (FIN)     12 January 2017

Is this deduction in salary/

Or employer has modified salary to CTC and you have accepted it?

Is Gratuity component mentioned in CTC?

 

Pls post full facts of the matter.

Vikram Sharma   14 January 2017

@Kumar Doab Sir ,

Gratuity is recently introduced in our salary . HR informed us about the deduction and yes it''ll be mentioned in the salary slip . This component wasn't there when I joined the institute and as said it is recently introduced . I've not signed any documents for same .

Kumar Doab (FIN)     14 January 2017

“Gratuity is recently introduced in our salary………. it is recently introduced……….. This component wasn't there when I joined the institute””

Is of no relevance.

Since teachers and (in private and uncovered sector )  are made eligible with restrospective effect from 1997.

Even if such statutory provisions are not mentioned in appointment letter/contracts, it is still enforceable.

 

“HR informed us about the deduction and yes it''ll be mentioned in the salary slip”

 

When it is shown come back and post under which head it is shown?

 

“I've not signed any documents for same .”

 

My apprerhension is that by some circular,email salary has been revised to  and Gratuity is made part of it.

 

Still apprehensions and apprehensions.

You need to check and confirm at your end.

 

 

 

Sai Krishna Thorata   01 November 2017

My father worked in an un aided private college (Non teaching- office staff) since 1992 till yeasterday i.e Oct 31, 2017. and PF used to deducted from his salary every month.

total term of service is around 25 years. can he claim gratiuty ..? 

what about that retrospective  date of april 1997..? 


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