Teachers’ Gratuity Rights Clarified: Supreme Court Decides Between State Rules and Payment of Gratuity Act
The Supreme Court ruled that aided school teachers in Maharashtra are governed by the Maharashtra Civil Services (Pension) Rules, 1982 (under Article 309) for gratuity, not the Payment of Gratuity Act, 1972. The Court held that since their pay and service conditions are state-regulated, they fall under the more beneficial state scheme, which includes pension and death-cum-retirement gratuity (DCRG). Legal heirs need not produce a heirship certificate if nominated, but must submit an indemnity undertaking. Interest at 7% was mandated for delayed payments.
Facts Of The Case:
The petitioner, Vikram Ghongade, is the son of a deceased teacher employed at an aided school in Maharashtra. His mother passed away while in service, and he sought gratuity under the Payment of Gratuity Act, 1972. How...