Gratuity denied - should have age of 58 or completed 20 years in organisation than they are eligible?

Hi, I have completed 10 years in a private school organization. However, the school denied giving me gratuity. I then took the case to the education department in Punjab. Now, they have asked me for a letter from the school stating that a person should either be 58 years old or have completed 20 years in the organization to be eligible for gratuity. The education department has also requested any legal orders or written information that I may have.

Thank you for your assistance.

Find out your letter of appointment, if you have signed such a clause or not.

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This corrected text maintains the original meaning of the message while addressing the spelling and grammar errors.

Hi,

As per the Payment of Gratuity Act, Section 4 states:

Payment of Gratuity - (1) Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years:
(a) on his superannuation, or
(b) on his retirement or resignation,
(c) on his death or disablement due to accident or disease:

Provided that the completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement.

It does not make sense to state that one has to complete 58 years or 20 years in service. Let them show the rule. You may take further action in this regard.

Thanks and Regards

Hi,

The Payment of Gratuity Act is a central act known to everyone. It is mentioned in the act that if an employee completes a tenure of 5 years, they are entitled to gratuity. You can simply obtain a copy of the Gratuity Act and submit it in writing to the specific office requesting it.

Gratuity on completion of 5 years in commercial establishments is provided if they come under the Shop and Establishment Act or Factory Act and have employed more than 10 employees. Please refer to Section 1, Clause 3B of the Payment of Gratuity Act, 1972. It is important to consider breaks in service. Additionally, any changes in management or affiliation issues, particularly between private and government entities, should also be taken into account.

Please approach the labor department with your case. You are entitled to gratuity, and school rules cannot substitute government rules.

Dear Jasmeet,

You have not mentioned whether you belong to the teaching faculty or the non-teaching staff of the private school.

Anyway, educational institutions employing 10 or more employees have been notified as a class of establishments to which the PGAct, 1972 would apply as per the notification in S.O. 1080 dated 03-04-1997 issued by the Central Govt under section 1(3)(c) of the PGAct, 1972.

The definition of the term "employee" under section 2(e) of the Act has been widened as per the Payment of Gratuity (Amendment) Act, 2009, with retrospective effect from 03-04-1997 so as to include teachers employed in educational institutions.

Therefore, the contention of the School Management is totally wrong, and its refusal to pay gratuity on that ground is illegal.

It is advisable to engage the services of a Labor Law advocate and arrange to file a claim for gratuity before the Controlling Authority under the Act for the area where the school is situated.

As far as my knowledge is concerned, the High Court has held that all teaching staff working in educational institutions are exempted from payment of gratuity. However, every state has established rules to address its specific situations and requirements.

Please let me know if you need further assistance.

I would like to request Mr. Gannahope to go through the Statement of Objects and Reasons to the Payment of Gratuity (Amendment) Act, 2009. It has been categorically stated therein that in tune with the observations of the honorable Supreme Court in its judgment in Ahmedabad Private Primary Teachers' Association v. Administrative Officer and others (AIR 2004 S.C 1426), it has been proposed to widen the definition of 'employee' under the Act in order to extend the benefit of gratuity to the teachers.