Payment Of Gratuity To Teachers

The Hon'ble Supreme Court in its recent judgment pronounced on January 7, 2019 in the case of Birla Institute of Technology vs. State of Jharkhand [Civil Appeal No. 2530 of 2012] ("BIT Case"), has endorsed its earlier view taken in the case of Ahmadabad Pvt. Primary Teachers Association vs. Administrative Officer and Others [(2004) 1 SCC 755] ("APPTA Case") that teachers are not employees for the purposes of Payment of Gratuity Act, 1972 ("PG Act").

Facts and Judgment in the BIT Case: In the BIT Case, the respondent no. 4 was appointed as an assistant professor in Birla Institute of Technology ("BIT") on September 16, 1971 and superannuated on November 20, 2001 after attaining the age of superannuation. The respondent no. 4 made a representation to BIT for payment of gratuity under the PG Act which demand was declined by BIT. Subsequently, the respondent no. 4 submitted an application against BIT, before the controlling authority under the PG Act and the controlling