The Supreme Court has ruled that teachers come under the Payment of Gratuity Act, 1972. The SC has recalled it January 2019 judgement which held that teachers were not entitled to gratuity.
In January 2019, the court had stated that teachers did not fall within the ambit of the definition of employee under Section 2(e) of the Payment of Gratuity Act. However, the court had later suo motu stayed the implementation of the order and listed it a fresh hearing. This was because the court was unaware that Parliament had amended the Act in 2009 to include teachers in the ambit of employees.
Gratuity is a monetary benefit given by the employer to the employee for rendering services continuously for five years or more. It is payable to the employee on his superannuation, or on his retirement or resignation.
The Payment of Gratuity Act, 1972 sets out gratuity rules and requirements in India. The Act is applicable to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments with ten or more employees.