Employees of educational institutions which are not state owned or state aided are covered by EPF and ESI subject to the coverage rules prescribed therein. Subject to state amendments teachers are not covered by Payment of Bonus Act. Similarly, Payment of Gratuity Act is also applicable to employees of educational institutions who are doing administrative functions. However, there is a move to amend the Payment of Gratuity Act to include teaching staff also under the coverage of the Act.
Educational institutions not covered by states service rules and having registered under the State's Shops and Commercial Establishments Act will have to follow service rules prescribed by the said Act. As such some other Acts such as Payment of Wages Act, Minimum Wages Act, Maternity Benefits Act and National and Festival Holidays Act (state Act) will also have direct bearing on educational institutions.
Regards,
Madhu.T.K