Teacher/Headmaster Not ‘Employee’ Under Gratuity Act, Not Entitled To Benefits: Allahabad High Court

The Allahabad High Court has held that teachers and headmasters in institutions under the U.P. Basic Education Board do not qualify as “employees” under Section 2(e) of the Gratuity Act, 1972, and are thus ineligible for its benefits.

The Court clarified that their appointments and service conditions, including gratuity, are governed solely by the U.P. Basic  Education Teacher Service Rules, 1981, and relevant government orders.

Since the petitioner retired at 64, exceeding the state’s 60-year limit, he was deemed ineligible.

The Court affirmed that state-specific schemes take precedence over the central Gratuity Act for such teachers and dismissed the appeal. [Bindra Prasad Patel v. State Of UP and 3 Others]