Who is an Employee?

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Who is an employee?

Under section 2 of the Act, answers the question- Who Is An Employee? The definition of “employee” has been amended by the Payment of Gratuity (Amendment) Act, 2009 to cover the teachers in educational institutions retrospectively with effect from 3rd April 1997. Therefore the amendment to the definition of “employee” has been introduced in pursuance to the judgment of Supreme Court in Ahmadabad Private Primary Teacher’s Association v. Administrative Officer, AIR 2004 SC 1426. Thus the ceiling on the amount of gratuity from Rs.3.50 lakhs to Rs.10 lakhs has been enhanced by the Payment of Gratuity (Amendment) Act, 2010.

As per Section2, the amendment done by the Payment of Gratuity (Amendment) Act, 2009. Here “employee” means any person, employed for wages. Other than an apprentice, whether or not the terms of such employment are express or implied. In any kind of work, in connection with the work of a factory,  oilfield, mine, railway company, plantation, port, shop or any other establishment to which this Act is applicable. But it does not include a person holding a post under the Central Government or a State Government and is governing.

Thus the teacher was held to be not an employee (LAB 1C Pat 365) under the Act. Hence, the teachers are clearly not intended to be covered by the definition of ‘employee’.

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