 bill no lxxiv of 2006 the payment of gratuity (amendment) bill, 2006 a billfurther to amend the payment of gratuity act, 1972be it enacted by parliament in the fifty-seventh year of the republic of india as follows:—1 (1) this act may be called the payment of gratuity (amendment) act, 2006     (2) it shall come into force with immediate effectshort title and commencement39 of 19725amendment of long title amendment of section 210 152 in the long title of the payment of gratuity act, 1972 (hereinafter referred to as the principle act), after the word 'shop' the words "schools, colleges, universities" shall be inserted3 in section 2 of the principle act, for clause (e) the following clause shall be substituted, namely:—'(e) "employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, school, college, university, to do any skilled, semi-skilled or unskilled, manual, supervisory, technical, teaching or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include such person who holds a post under the central government or a state government and is governed by any other act or by any rules providing for payment of gratuity' statement of objects and reasonsthe payment of gratuity act, 1972 (act no 39 of 1972) was enacted by parliament providing for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies or shops or other establishments and for matters connected therewith or incidental theretothe definition of "employee" as in section 2 (e) of the act covers any establishment, factory, mine, oilfield, plantation, port, railway company or shop to do any skilled, semiskilled, or unskilled, manual, supervisory, technical or clerical work and not those performing teaching jobs in schools, colleges or universitiesthis has led to different interpretations as to the applicability of the provisions of the act to the large sections of teaching professionals resulting in denial of benefit of gratuity on supperannuation, etc to this professional communityin order to rectify this anomaly and to extend benefit of gratuity to the teaching community specific amendments to the act provisions have become necessary to bring the schools, colleges and universities and those performing teaching jobs within the purview of the actthis bill seeks to achieve this objectivesbrinda  karat financial memorandum clauses 3 of the bill provides for bringing those engaged in teaching job in schools, colleges and universities within the coverage of the principal actthe expenditure on payment of gratuity to the persons engaged in teaching job in schools, colleges and universities falling within the administrative jurisdiction of the central government shall devolve on the ministry of human resource developmentthe expenditure on payment of gratuity to the persons engaged in teaching job in schools, colleges and universities falling within the administrative jurisdiction of the state governments shall devolve on the respective state governmentsthe expenditure on payment of gratuity to the persons engaged in teaching job in schools, colleges and universities, which are run by private persons/institutions shall be met by the respective employers however, expenditure in this regard in respect of any institution receiving aid/grant from the university grants commission may have to be provided for within such aid/grantit will involve recurring expenditure of rupees fifty crore from the consolidated fund of india annexureextract from the payment of wages act,1972(act no 39 of 1972)an actto provide for a scheme for the payment of gratuity to employees engaged in factories, mines, oilfields, plantations, ports, railway companies, shops or other establishments and for matters connected therewith or incidental thereto|            |     |     |    ||--------------|-------|-------|------||            |     |     |    || definitions |       |       |      || 2           |       |       |      ||            |     |       |    ||            |     |     |    |(e) "employee" means any person (other than an apprentice) employed on wages, in any establishment, factory, mine, oilfield, plantation, port, railway company or shop, to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work, whether the terms of such employment are express or implied, and whether or not such person is employed in a managerial or administrative capacity, but does not include such person who holds a post under the central government or a state government and is governed by any other act or by any rules providing for payment of gratuity|     |     |     |    ||-------|-------|-------|------||     |     |     |    | rajya  sabha———— a bill further to amend the payment of gratuity act, 1972————(shrimati  brinda karat, mp)