"Employee means any person (oilier than an apprentice) who is employed for wages, whether the terms 01 such employment are expressed or implied, in any kind of work, manual or otherwise, in or in connection with the work of a factory, mine, oilfield, plantation, port, railway company, shop or other establishments, to which this Act applies, but does not include any 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," the Minister read out the definition of an "employee" from the Act.

He said that the amendment was necessitated because the Supreme Court ruled on January 10 that schoolteachers were not employees under the provisions of the gratuity laws and therefore were not entitled to gratuity payments. The apex court had earlier dismissed an appeal filed by the Ahmedabad Private Primary Teachers Association challenging a similar High court order.