Govt introduces new bill in LS to widen definition of employee

New Delhi: The government has introduced a new bill in Lok Sabha to widen the definition of “employee” and bring in more people under the ambit of the Payment of Gratuity Act.

Minister of State for Labour and Employment Oscar Fernandes on Thursday moved the Lok Sabha to withdraw the Payment of Gratuity (Amendment) Bill, 2007 and introduce the Payment of Gratuity (Amendment) Bill, 2009 in its place.

In both the bills, the definition of “employee” has been widened to include any person who is employed for wages, other than an apprentice. It also clears that the terms of such employment may be express or implied, in any kind of work, manual or otherwise.

In view of a Supreme Court order in a matter pertaining to qualification of teachers for payment of gratuity under the Act, the amendments were first introduced in Lok Sabha on 26 November 2007.

The same was then referred to the Standing Committee on Labour which made certain recommendations.

On the basis of these recommendations it was deemed to give effect to the amendment retrospectively from 3 April 1997, the date on which the provisions of the said Act also became applicable to educational institutions.


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