{"id":421,"date":"2020-04-23T10:29:52","date_gmt":"2020-04-23T10:29:52","guid":{"rendered":"http:\/\/lexforti.com\/legal-news\/?p=421"},"modified":"2021-01-17T11:55:10","modified_gmt":"2021-01-17T11:55:10","slug":"teachers-at-any-level-of-education-are-not-eligible-for-gratuity-under-payment-gratuity-act-1972","status":"publish","type":"post","link":"https:\/\/lexforti.com\/legal-news\/teachers-at-any-level-of-education-are-not-eligible-for-gratuity-under-payment-gratuity-act-1972\/","title":{"rendered":"Teachers at any level of education are not eligible for gratuity under Payment Gratuity Act, 1972"},"content":{"rendered":"\n<p><strong> Aashray Chaudhary | Symbiosis Law School, Hyderabad | 26th December 2019 <\/strong><\/p>\n\n\n\n<p><strong>Birla institute of technology v\/s State of Jharkhand<\/strong><\/p>\n\n\n\n<p><strong>Facts<\/strong><\/p>\n\n\n\n<ul><li>The case is related to the Payment of Gratuity Act, 1972\n(hereinafter referred to as \u201cthe act\u201d). The Respondent no.4 (hereinafter\nreferred to as \u201cthe respondent\u201d) was an Assistant professor at the Birla\nInstitute of Technology (the Appellant) and was superannuated<a href=\"#_ftn1\">[1]<\/a> on\n30<sup>th<\/sup> November 2001.<\/li><li>Thereafter the respondent made a representation to the\nappellant, praying for the payment of the Gratuity that is due to him. As the\nappellant had declined to pay such amount, the respondent filed an application before\nthe controlling authority under the act. The authority allowed the application\nand ordered the appellant institute to pay a sum of Rs. 3,38,786\/- along with\ninterest of 10% p.a. to the respondent.<\/li><li>Thereafter the appellant had lost at every appellate\nstage and hence he filed the appeal before the Apex Court.<\/li><li>\u00a0The main\nquestion arising in this case was whether a teacher can be considered as an\nemployee under the act. And thus this appeal was brought before the Apex Court.<\/li><\/ul>\n\n\n\n<p><strong>Issue\n<\/strong><\/p>\n\n\n\n<ol><li>Whether a \u201cteacher\u201d could be regarded as an employee\nunder Section 2(e) of the Act?<\/li><\/ol>\n\n\n\n<p><strong>What\nwas Held<\/strong><\/p>\n\n\n\n<ul><li>The court at first through a judgement dated 7<sup>th<\/sup>\nJanuary 2019 held that a teacher cannot be regarded as an employee under\nsection 2(e) of the act. The question was already dealt with and answered in\nanother judgement of the Apex Court named as <em>Ahmadabad Pvt. Primary Teacher Association vs. Administrative officer\nand others<\/em><a href=\"#_ftn2\">[2]<\/a>.<\/li><li>The court in the above cited judgement compared\nvarious definition clauses of the word \u201cemployee\u201d in different labour related\nlegislations. It was of the view that if the legislature intended to cover in\nthe definition of \u201cemployee\u201d all kinds of employees, it could have used such\nwide language as is contained in various other enactments. Specific inclusion\nof certain categories of employees like managerial and administrative positions\nin section 2 (e) shows the limited applicability of the act.<\/li><li>The Court was of the view that though the Division\nBench in this case had considered the above mentioned judgement but it erred in\ndistinguishing it on the ground that it is applicable only to the primary\nteachers working in the primary schools.<\/li><li>In the present case the Respondent was an Assistant\nprofessor in an institute for Higher Studies and would be considered as a\ntrained professional compared to a primary school teacher who can be untrained.\nThe Court Denying any merit to this distinction said that Para 24 of the\nJudgement clearly states that \u201cteachers\u201d are clearly not intended to be covered\nby the definition of \u201cemployee\u201d. In other words there was no distinction to be\nmade between the teachers <em>inter se <\/em>while\napplying the above cited Judgement.<\/li><li>The court also said that there are many states which\nhave separate statutes granting gratuity benefits to teacher in educational\ninstitute.<\/li><li>\u00a0However after\nsuch pronouncement it came to the notice of the Court that after the Decision\nrendered in <em>Ahmadabad Pvt. Primary\nTeachers Association case<a href=\"#_ftn3\"><strong>[3]<\/strong><\/a> <\/em>the Parliament\namended the definition of the word \u201cemployee\u201d as defined in Section 2(e) of the\nact by Amending Act No.47 of 2009 on 31<sup>st<\/sup> December 2009 with\nretrospective effect from 3<sup>rd<\/sup> April 1997.\u00a0\u00a0 <\/li><li>Thus the Hon\u2019ble Court Through a second Judgement\ndated 7<sup>th<\/sup> March 2019 clarified it stance and reheard the matter on\nmerits. It recognised that teachers would now come under the purview of \u201cemployee\u201d\nunder section 2(e) of the act as a result of amendment in 2009.<\/li><li>Thus now the law laid down in <em>Ahmadabad Pvt. Primary Teachers Association case<a href=\"#_ftn4\"><strong>[4]<\/strong><\/a> <\/em>was no longer\napplicable to teachers and thus teachers were entitled to gratuity under the\nact.<\/li><li>The court also said that the fact that the\nConstitutional validity of the\u00a0 Amendment\nAct No. 47 of 2009 being challenged in a pending writ petition does not affect\nthe constitutionality of the Amending act and nor does it affect the right of\nthe respondent in claiming the gratuity amount from the appellant under the\nact. <\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><a href=\"#_ftnref1\">[1]<\/a>Section 2 (r) of the Payment of Gratuity Act, 1972\n&#8220;superannuation&#8221;, in relation to an employee, means the attainment by\nthe employee of such age as is fixed in the contract or conditions of service\nat the age on the attainment of which the employee shall vacate the employment<\/p>\n\n\n\n<p><a href=\"#_ftnref2\">[2]<\/a> (2004) 1\nSCC 755<\/p>\n\n\n\n<p><a href=\"#_ftnref3\">[3]<\/a> Ibid<\/p>\n\n\n\n<p><a href=\"#_ftnref4\">[4]<\/a> ibid<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aashray Chaudhary | Symbiosis Law School, Hyderabad | 26th December 2019 Birla institute of technology v\/s State of Jharkhand Facts The case is related to the Payment of Gratuity Act, 1972 (hereinafter referred to as \u201cthe act\u201d). The Respondent no.4 (hereinafter referred to as \u201cthe respondent\u201d) was an Assistant professor at the Birla Institute of [&hellip;]<\/p>\n","protected":false},"author":167,"featured_media":373,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[26],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Teachers at any level of education are not eligible for gratuity under Payment Gratuity Act, 1972 - LexForti<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lexforti.com\/legal-news\/teachers-at-any-level-of-education-are-not-eligible-for-gratuity-under-payment-gratuity-act-1972\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Teachers at any level of education are not eligible for gratuity under Payment Gratuity Act, 1972 - LexForti\" \/>\n<meta property=\"og:description\" content=\"Aashray Chaudhary | Symbiosis Law School, Hyderabad | 26th December 2019 Birla institute of technology v\/s State of Jharkhand Facts The case is related to the Payment of Gratuity Act, 1972 (hereinafter referred to as \u201cthe act\u201d). 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