Applicability of Minimum Wages Act and Payment of Gratuity Act to Teachers: An Analysis

Abstract

Gratuity is a kind of retrial benefit like Pensions, Provident funds etc. It is also said that in its etymological sense gratuity is a gift especially for services rendered or return for favours received . In other words, it is a gratuitous payment given to an employee on attaining superannuation or physical disablement etc. The main purpose of the gratuity is to help the employee after the retirement. To meet the post-retiral expenses, it is a kind of assistance to an employee. When employed person becomes unemployed after termination of his service, he will be in need of financial protection. Because of his old age, incapacity etc. he may not be in a position to work again to feed himself and his dependants. Then gratuity protects against loss of income to some extent. In Calcutta Insurance Co. Ltd. v. Their Workmen , the Hon’ble Supreme Court said that the ‘Gratuity’ is a reward for good, efficient and faithful service rendered for a considerable period… and it is earned by an employee for a long and meritorious service . The term denotes a sum promised by an employer to pay the employee at the end of the service. A gratuity which is a gift and not in the nature of a debt which would be legally revocable by the ex-employee

Keywords: Gratuity to Teachers, Pre and Post Amendment Scenario