Payment Of Gratuity

The Supreme Court examined the issue of payment of gratuity to an Assistant Professor in the matter of Birla Institute of Education vs. State of Jharkhand¹. In order to determine this issue, the Apex Court relied on the matter of Ahmadabad Pvt. Primary Teachers Association vs. Administrative Officer and Others² , where the question that came up for consideration was whether a 'Teacher' could be regarded as an "employee" under Section 2(e) of the Payment of Gratuity Act, 1972 ("the Act"), and, if so, whether a teacher could be entitled to claim gratuity from his/her employer in accordance with the provisions of the Act. It was held that – "a teacher is not an employee, as defined under Section 2(e) of the Act, and hence, he/she is not entitled to claim any gratuity amount from his employer under the Act".