Are Private Schools Skipping Gratuity Payments to Teachers? What Can Be Done?

Many private schools (CBSE & state government schools) are avoiding payment of gratuity to their teachers as per the 2009 act. Can they escape? If it is wrong, to whom should they turn for help?

They should approach the Controlling Authority/Jurisdictional Assistant Labour Commissioner.

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Thank you!

Dear Bose,

The Payment of Gratuity Act has also been amended w.e.f. 3-4-1997, extending coverage to educational institutions. Therefore, the teachers of an educational institute are covered under the Act. The local Assistant Labour Commissioner is the Controlling Authority under the Act and can be approached for any assistance. In case of a delay of more than a month in the payment of gratuity, interest (@10% SI under Central Rules) is payable.

Thank you.

Hi Dear KK HR,

I hope this rule is applicable for Chennai private schools as well. Are the teachers employed in Chennai also eligible for Gratuity payment at the time of exit, after 5 years of service? It is concerning to hear that one of the leading international/CBSE schools is denying its teachers Gratuity payments.

Thank you.