Teachers are “Employee” as Defined Under Section 2(e) of the Payment of Gratuity Act: Kerala HC
Recently, the Kerala High Court dismissed a petition after ruling that teachers come under the purview of the term employee as defined under the Payment of Gratuity Act (the Act).
The Bench of Justice Murali Purushothaman clarified that Cochin University of Science and Technology (CUSAT) being an educational institution is an establishment u.s 1(3)(c) of the Act.
In the instant case, the CUSAT had challenged the controlling authority and appellate authority’s order ruling that the respondent is entitled to gratuity for service rendered.
Before the High Court, the university’s standing counsel submitted that the university is not an establishment u.s 1(3)(c) nor an employer u.s 2(f).
It was also contended that the respondent is not an employee u.s 2(e) of the Act. The counsel further contended that the respondent was hired on a contract basis and was extended on the execution of fresh contracts.
At the outset, the court noted that in the exercise of powers conferred under this Section, the Centre extended the provisions of the Act to educational institutions that employ more than 10 people as per the notification dated 03.04.1997.