In Brief
Birla Institute of Technology (BIT), a private technical educational institute, appealed against an order requiring it to pay gratuity to a retired teacher. The Supreme Court held that teachers employed in educational institutions—whether primary or higher—are not 'employees' under Section 2(e) of the Payment of Gratuity Act, 1972. Teachers do not fall within the statutory categories of 'skilled', 'semiskilled', or 'unskilled' workers contemplated by the Act. The Court set aside the High Court's order, which had incorrectly distinguished the Supreme Court's earlier precedent by limiting it to primary school teachers. The Court clarified that teachers may pursue benefits under separate State schemes if available.
The lawyer headnote and full judgment text are available to registered users.