Teachers in Aided Schools Not Covered Under Gratuity Act: Supreme Court

The Supreme Court has held that teachers in government-aided schools are not governed by the Payment of Gratuity Act, 1972.

Their retirement benefits, including gratuity, are instead regulated by state-specific service rules framed under Article 309 of the Constitution, such as the Maharashtra Civil Services (Pension) Rules, 1982.

The Court clarified that aided school teachers are treated similarly to government employees regarding service conditions.

The court also ruled that nominees can claim gratuity without producing a legal heirship certificate, provided an indemnity affidavit is submitted. The Court directed payment with 7% annual interest from one month after the teacher’s death.