In Brief
The Supreme Court upheld the constitutional validity of the Payment of Gratuity (Amendment) Act, 2009, which extended gratuity benefits to teachers in private educational institutions with retrospective effect from 3rd April 1997. The Court rejected arguments that the amendment violated separation of powers by overruling an earlier judgment that excluded teachers from the definition of 'employee'. It held that amending legislation does not overrule prior court decisions but changes the law, and such amendment is constitutionally permissible. The retrospective application was justified as rectifying an inadvertent legislative defect and remedying discrimination suffered by teachers. The Court also clarified that Section 4 of the 2016 Repealing Act does not undo the 2009 amendments and ordered private schools to pay gratuity to teachers within six weeks.
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