New bill to widen definition of employee

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 yesterday 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 November 26, 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 April 3, 1997, the date on which the provisions of the said Act also became applicable to educational institutions.