Confused About Gratuity for Teachers in Schools? Seeking Clarity on Legal Coverage

I have joined a public school in Gurgaon. Here, 15 teachers have been working since 1999. The confusion arises because I come from a manufacturing background and have no prior experience working in a school. Therefore, I kindly request clarification on the following two points:

1. Are teachers eligible for gratuity?
2. Are schools covered under the Shop Act or any other relevant legislation?

Please provide the necessary notifications for the above queries if available.

Regards,
Shalu

Eligibility for Gratuity for Teachers

You are eligible for gratuity. There is a notification from the Central Government regarding an amendment in the definition of employees under the Act. After that, it is applicable to all kinds of employees who are employed in any shop or establishment. It was extended to educational institutes in the year 1997 by notification.

The notification regarding the change in the definition of an employee came on the date 31.12.2009. Judgments are from earlier dates. After this notification, we have not seen any such judgment disallowing gratuity payment to teachers. The Payment of Gratuity Act, 1972 applies to every shop or establishment within the meaning of any law for the time being in force in relation to shops and establishments in a State in which ten or more persons are employed or were employed on any day of the preceding twelve months. If this private school is covered under this Act, then in my opinion, teachers will definitely get gratuity under this Act.

In your case, the law-enforcing agency is the State Labor Department. Therefore, first approach them and let us know what they say for further discussion or comments.