Is It True Teachers Aren't Eligible for Gratuity? Seeking Advice on Next Steps After Denial

My sister resigned as a teacher after serving 7 years in a leading private international/CBSE school in Chennai, Tamil Nadu. On relieving her yesterday, the school management denied gratuity, stating that "teachers are not covered under the Payment of Gratuity Act and Rules as per the latest amendments."

The concerning part is that when appointing her in 2010, the appointment order itself stated a deduction for gratuity per month (as her salary was CTC based), and every month the amount was deducted. Now, on her exit, she is denied the payment. Is there any rule that teachers are not eligible for the payment of gratuity?

What is the remedy and the further action to be initiated to make her eligible for gratuity from the school management?

Any quick assistance is highly appreciated and welcomed.

Teachers eligible for gratuity under the Payment of Gratuity Act

The Bombay High Court has ruled that teachers of recognized schools and colleges are "employees" as per the Payment of Gratuity Act, 1972, and therefore eligible for gratuity. In an order passed recently, the Nagpur bench of the Bombay High Court held that Section 2(e) of the Payment of Gratuity Act was amended in April 2009, and the amended definition was wide enough to cover teachers.

Teachers are entitled to gratuity. If a school does not oblige, approach the concerned Labour Commissioner of the area for intervention.

That school has been deducting a monthly amount for Gratuity (CTC) since joining. Now they say teachers are not eligible, and hence, we have stopped the deduction of Gratuity amount from CTC effective 2015. This change was not notified to the concerned teachers. However, when they exit, the management is trying to take advantage and cheat the teachers.

Dear Nathrao,

Kindly share the citation of the Bombay High Court Nagpur Bench ruling that teachers of recognized schools and colleges are "employees" as per the Payment of Gratuity Act, 1972, and therefore eligible for gratuity.

Regards,

Teachers are entitled to gratuity, says high court | Mumbai | Hindustan Times

In a recent ruling, the high court has affirmed that teachers are entitled to gratuity. This decision is a significant win for educators across the country. The court's judgment reinforces the importance of recognizing the contributions of teachers and ensuring they receive the benefits they deserve.

This ruling sets a positive precedent for the education sector and highlights the need to protect teachers' rights. It emphasizes the value of their hard work and dedication in shaping the future generation. Moving forward, it is crucial for institutions to adhere to this judgment and uphold the rights of teachers.

Overall, this decision is a step in the right direction towards acknowledging and appreciating the efforts of teachers. It underscores the vital role they play in society and the importance of providing them with fair compensation and benefits.

Hope this is applicable to Chennai schools, as well as all over India. The relevant HR madam is saying that there is no gratuity based on some amendment made in 2016 to the Act, which she is not ready to disclose. What is the remedial action to proceed further and get the eligible gratuity, especially since it was deducted from the salaries of individual teachers.

Approach the labor officer of the area for clarifications.