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Further, it does not make any discrimination between casual, contract, temporary and permanent worker who has completed the prescribed period of five years continuous service as defined in section 2A ofthe Act.

The liability for payment of gratuity vests in the employer.

Accordingly, a Central Law modeled largely on the pattern of West Bengal Employees’ Payment of Gratuity Act, 1971 was enacted and is known as the Payment of Gratuity Act, 1972.

The Payment of Gratuity Act, 1972 was made applicable to local bodies with effect from 8.1.1982.Therefore, the schools under the control of local bodies were covered under the Act with effect from 8.1.1982 itself.However, the employees of other educational institutions were facing denial of gratuity as they were not covered under the Act.The employees of the Government schools are already entitled to gratuity under the extant rules of the Government governing gratuity and pension but the employees of the private schools were having no legal entitlement to gratuity. The Notification came into force w.e.f 19.4.1997, date when it was published in the Gazette of India.As gratuity is an old age retiral social security benefit, it was considered desirable to extend the benefit of the Payment of Gratuity Act, 1972 to all employees employed in all educational institutions having ten or more persons. In an appeal filed before the Supreme Court in the case of Ahmedabad Private Primary Teachers' Association v.

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