There is no rule which states that 4 years and 8 months will entitle you to Gratuity. The Act provides for 5 years to be eligible for Gratuity. Kindly provide me with the legal provisions in this regard. As for the case of Mr. Sarveshwar, it is felt that as per the amendment, teachers at the primary, secondary, and college levels of unaided institutions are eligible for gratuity, with retrospective effect from April 3, 1997. The unaided schools/colleges/institutions should have arranged for compulsory insurance from LIC, or a policy from LIC to bear the payments, or the employers should pay from their own resources.
The schools under the control of local bodies were covered under the Act with effect from January 8, 1982. The employees of the Government schools are already entitled to gratuity under the extant rules of the Government governing gratuity and pension, but the employees of the private schools had no legal entitlement to gratuity. As gratuity is an old age retiral social security benefit, it was considered desirable to extend the benefit of the Payment of Gratuity Act, 1972, to all employees employed in all educational institutions having ten or more persons. Accordingly, the Central Government extended the provisions of the Payment of Gratuity Act, 1972, to educational institutions employing 10 or more persons via the Ministry of Labour and Employment Notification No. S.O. 1080 dated April 3, 1997. The Notification came into force with effect from April 19, 1997, the date when it was published in the Gazette of India. The definition of “employee” under section 2 (e) of the Payment of Gratuity Act, 1972, was modified, and the Government has made the amendment with retrospective effect from April 3, 1997.
Trust the above clarifies the matter.
Regards,
Praful M Lale
Labour Law Consultant
[Phone Number Removed For Privacy Reasons]