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Teachers entitled to gratuity, rules SC
Why in news?
- The Supreme Court on Thursday altered its judgment and said teachers were entitled to claim gratuity under the Payment of Gratuity Act.
- The court had frozen the implementation of the court's January 7 verdict which erroneously held that a teacher is not an 'employee' under the Payment of Gratuity Act.
More in news
- The Bench of Justices Sapre and Malhotra was not apprised of the later development of Parliament amending the law in 2009 to effectively include teachers within the ambit of 'employee' under the Payment of Gratuity Act, 1972.
- The amendment had a retrospective effect dating back to 1997.
- Subsequent High Court judgments had also interpreted the 2009 amendment to include teachers within the definition of ‘employee’ under the Act irrespective of the institution in which they work.
What is the Payment of Gratuity Act, 1972
- The Payment of Gratuity Act was passed by Indian Parliament in 21 August 1972.
- Under Section 4, payment of gratuity is mandatory.
- The Payment of Gratuity Act, 1972 is applicable to the following:(1) Whole of India but according to section 1(2), it shall not be extended to State of Jammu and Kashmir.(2) Every factory, mine, oilfield, plantation, port and railway company.(3) Every shop or establishment within the meaning of any law in which ten or more persons are employed
Source
The Hindu