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The ruling also, inter alia, states that non-use of wide language similar to definition of “employee” as is contained in section 2(f) of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 reinforces the conclusion that teachers are not covered in the definition.The observations of the Supreme Court are as follows:- “Our conclusion should not be misunderstood that teachers although engaged in very noble profession of educating our young generation should not be given any gratuity benefit.
The Act has been recently extended to the State of Sikkim w.e.f. The Act provides for payment of gratuity to employees employed in any factory, mine, oilfield, plantation, port, Railway Company and in any shop or establishment employing ten or more workers.
It has also been extended to motor transport undertakings employing ten or more workers.
Under the Act, gratuity is payable at the rate of fifteen days’ wages for every completed year of service or part thereof in excess of six months subject to a monetary ceiling of Rs.3.50 lakh.
The Government has made the amendment with retrospective effect from April 3, 1997.
The Government has also introduced Payment of Gratuity (Amendment) Bill, 2010 in Parliament seeking to raise the current gratuity ceiling from Rs.