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Monday, May 24, 2010

Employees definition under Gratuity Act amended to included all types of works irrespective of salary limits

The Payment of Gratuity Act, 1972 definition of the term “employee” under Section 2 got widened.  It is no more the old definition of persons employed in administrative or managerial capacity.

 

The new definition is as follows,

Employees means any persons [NOT being an Apprentice] employed for wages in any kind of work (manual or otherwise) or in connection with work of factory, mine, plantation, oilfield, railway company, port or other establishment.

So, even teachers are eligible for gratuity now overriding the famous Ahmedabad Private Primary Teachers Association case.

Source: Payment of Gratuity (Amendment) Act, 2009

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