In Brief
Birla Institute of Technology, a premier technical institute, challenged orders directing it to pay gratuity to a retired assistant professor under the Payment of Gratuity Act, 1972. The Supreme Court allowed the appeal, holding that teachers—whether in primary or higher educational institutions—are not 'employees' as defined under Section 2(e) of the Act. The Act's definition covers only skilled, semi-skilled, or unskilled manual, technical, clerical, managerial or administrative workers, not educators. Teachers may seek gratuity benefits under separate State statutes or schemes if available.
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