May 6, 2017

Educational Rules and Regulations

CHAPTER I: VACANCY

1.0 What do you mean by Vacancy?
 The term vacancy is principally applied to cases where an office is not filled.

1.1 How to fill a Vacancy or a Vacant Post?
Broadly there are seven prevailing methods of recruitment to fill a Vacant Post viz.

  1. Promotion
  2. Deputation
  3. Absorption
  4. Short term contract
  5. Direct recruitment
  6. Re-employment and
  7. Composite method
But normally, the Institution follows the promotion and direct recruitment.

CHAPTER II: RECRUITMENT

2.0  What is Recruitment? 
Recruitment is the process of identifying and appointing the best-qualified suitable candidate (from within or outside of the Institution) for a job vacancy in a most timely and cost effective manner.
Please do remember, recruitment is of the most crucial roles of the Management. The level of performance of an Institution depends on the effectiveness of its recruitment function. Hence, recruitment policy should be well planned and practical to attract more and good talent to apply in the Institution. Hence, there is a need for formulating an effective and successful recruitment strategy which should cover the following elements:
(A)  Identifying and prioritizing jobs
(B)  Candidates to target
(C)  Sources of recruitment
(D)  Trained recruiters
(E)  How to evaluate the candidate


  1. Identifying and prioritizing jobs
Recruitment keeps arising at various levels in every Institution and it is almost a never-ending process. It is impossible to fill all the vacancies immediately. Therefore, there is a need to identify the vacancies requiring immediate attention and action. To maintain the quality of the recruitment activities, it is useful to prioritize the vacancies whether to focus on all vacancies equally or focus only on key jobs first.

  1. Candidates to target
The recruitment process can be effective only if the Institution completely understands the requirements of the type of candidates that are required and will be beneficial for the Institution. This covers the following parameters as well:
i.                    Performance level required: Different strategies are required for focusing on appointing high performers and average performers.
ii.                  Experience level required: The strategy should be clear as to what is the experience level required by the Institution. The candidate’s experience can range from being a fresher to experienced senior professionals.
iii.                Category of the candidate: The strategy should clearly define the target candidate. He/she can be from the same institution, different institution, or unemployed, etc.

  1. Sources of recruitment
The strategy should define various sources (external and internal) of recruitment. Which are the sources to be used and focused for the recruitment purposes for various positions? Employee selection is one of the most effective sources of recruitment.

  1. Trained recruiters
The members of the Selection Committee for conducting the interviews and the other recruitment activities should be well-trained and experienced to conduct the activities. They
should also be aware of the major parameters and skills (e.g.: behavioural, technical etc.) to focus while interviewing and selecting a candidate.

  1. How to evaluate the candidate
The various parameters and the ways to judge them, that is, the entire recruitment process should be planned in advance.

a. Advertisement,
b. Selecting the candidates
c. Sending the call letter
d. written test
e. Interview
f. Demonstration class, etc.

CHAPTER III: PROCESS OF RECRUITMENT
2.0  Advertisement
  1. All vacancies shall normally be advertised in the local leading News Paper (one Hindi & one English) giving the details of requirements like, age, qualification, experience etc. mentioning  the last date of submission of the Application and mode of interview.
  2. In the Archdiocese of Delhi, vacancies are also published in Archdiocesan Monthly Publication (Voice of Delhi and Delhi Vani)
  3. Sent in a tabulation form giving names of the schools, post, and requirements of the teachers to all the Churches of Delhi Catholic Archdiocese to be announced in the Church Notices and to be put on the Notices Board of the respective Churches.
3.1 Selection of Candidates
After receiving the applications, the Manager and Principal scrutinize the forms and select few suitable candidates who fulfill the requirements of recruitment rules for the vacant post.

3.2 Sending of the call letter for interview
After selecting the candidates for the different posts, the Principal of the School sends call letters to chosen candidates for interview, giving time and venue for interview and asking them to bring all the possible original certificates for interview.
    Call for the interview is intimated either
Ø  By surface registered mail or
Ø  By direct calling on the mobile or land line given by the candidates in the application form, or
Ø  By sending sms or by Email given by the candidates. 

3.3 Written Test
Candidates in different batches are called at different time according to subjects and nature of works.  For each batch half an hour written self-introductory session is conducted by giving them the required form to be filled in. These forms are submitted with the Selection Committee to be used while taking the interviews of the candidates. (See Annex Form No. I)

3.4 Interview (By Selection Committee or Interview Panel)
A Selection Committee is a group of people whose job is to choose someone for a particular purpose. This Committee is responsible for interviewing and assessing candidates for appointment, and make recommendations to the Appointments and Promotions to the Managing Committee.

Every Educational Institution shall have a Selection Committee comprising the following:
(i)       The Manager of the School (ex-officio).
(ii)      The Principal/Headmaster/Headmistress of the School (ex-officio).
(iii)     One member expert in the discipline, that is the subject to be taught or office to be filled.
(iv)   In case of aided schools as per the Delhi School Education Act & Rules 1973, two Govt. observers are invited for the interview.
(v)       The Director for Education of Delhi Catholic Archdiocese (ex-officio).

Now Selection Committee (Interview Panel) will interview the candidates and will focus specially on the following four things during interview:
(i)                  Recruitment Rules: - The Recruitment Rules are statutory in nature and their main objective is to ensure appointment/selection of the best suitable candidate for a particular post by prescribing relevant experience, educational qualifications, appropriate method of recruitment, keeping in view the duties and responsibilities attached to the post operating in an Institution. 

The Recruitment Rules are an effective and extremely important tool for ensuring fair process of recruitment or selection in accordance with Constitutional provision.
(ii)               Personal Bio-data: - Here the Selection Committee will use the detailed sheet (self-introductory form Annex -I) given by the Candidates before facing the interview. First the Selection Committee will ask questions on the line of the detail (self-introductory form) given by the candidate.
(iii)               Academic Aptitude: - Here the Committee will focus on their academic skill, on the subject or on the job which the candidate is going to handle. Committee will also keep their tracks on the fluency of Candidate’s language, alertness and promptness in handling the questions.
(iv)               General Knowledge: - Here the Committee will focus their questions on some general topics, curricular and on co-curricular activities.

After the interview of a particular group is over, the Selection Committee will prepare Minutes of the Selection Committee of “CANDIDATES CALLED FOR INTERVIEW” duly signed by the each member on the panel. (See Annex Form No. II)

3.5 Demonstration (Demo) Class
After the interview, the Selection Committee will prepare a list of the candidates whom they want to call for Demonstration Class. For this also the Selection Committee will prepare a report of “CANDIDATES CALLED FOR DEMONSTRATION” duly signed by the each member of the Panel. (See Annex Form No. III)

3.6 Report of the Demonstration and Appointment of the suitable Candidates:
Normally, demonstration is taken by the subject experts where Principal, Manager and Director for Education for DCA are also present for their comments. Once the demonstrations of the candidates are over, the panel will decide the appointment of the suitable candidates. For this also the Members of the Selection Committee who attended the demonstration will prepare a final report of the candidates based on the comments of the subject experts.

Report will be prepared on “CANDIDATES APPOINTMENT ON THE POST OF... ……………” duly signed by the each member of the Panel. (See Annex Form No. IV)

Please Note: - It is mandatory for the Principal of the respective Schools to file all the details of the interview year wise, tucking all the relevant papers like reports of the (CANDIDATES CALLED FOR INTERVIEW, CANDIDATES CALLED FOR DEMONSTRATION, and CANDIDATES APPOINTMENT FOR THE POST OF………………..) to show that the Selection Committee has followed the right and fair procedure for the recruitment of the required post).

Once recruitment process is over, appointment is given to the suitable candidates for the required post. 


CHAPTER IV: APPOINTMENT

4.0 What is an Appointment?
An appointment is the act of putting a candidate into a non-elective position which is recommended by the Selection Committee and approved by the Managing Committee.

Remember, all appointments of all categories shall be made by the managing committee through the Manager on the recommendation of the selection Committee constituted by the society and in accordance with and upon such conditions as the managing committee may decide.

4.1 What is an Appointment Letter?
A Letter of Appointment is an agreement about the given job to an employee and position in that Institution.

All the employees including Teaching and Non-teaching Staff will be given Letter of Appointment. Appointment letter shall be for a specific period, which may be mutually extended on the agreed terms and conditions.

4.2 Categories of appointments
The following categories of appointment may be made by the Schools:
(A)  Permanent appointment
(B)   Contract Appointment
(C)  Ad hoc Appointment
(D)  Part-time
(E)   Visiting
(A) Permanent appointment
(i) After going through a formal interview, a permanent appointment is made to an employee by the school Managing Committee and given in writing by the School Manager on behalf of the school Managing Committee to enable him or her to hold a regular appointment in an established post.
(ii)This Appointment is made for a probationary period of one year expendable for two years, at the expiration of which he or she is confirmed in that particular job.
(iii) Once the appointment of an employee is confirmed, he or she may remain in the service of the Institution until he or she attains the age of superannuation /retirement.

Remember the following clause:
(a). The service of Permanent/confirmed employees are liable to be terminated by the Managing Committee on grounds of misconduct, persistent inefficiency, neglect of duty, prolonged illness which interferes with his/her attendance and due performance of duty, and breach of Code of Conduct and Rules of the School.
(b). When the service of Permanent employee is terminated by the Managing Committee for reasons of retrenchment because of abolition of the subject, class or department, such employees will be given three months’ notice or three month’s pay in lieu of notice, provided however, that such an employee shall receive a compensation of half a month’s pay for every completed year of those who have served for more than five years.
(c). Permanent employees desiring to leave the service shall give to the school three months’ notice in writing or three month’s pay in lieu of notice. It shall, however, be open to the school to accept three month’s salary in lieu of notice.

(B) Contract Appointment
(i) Contract Appointment means an employee who is appointed for a specified period purely on temporary basis. Contract appointment shall normally be for a specific period and not more than 240days, and reappointed after a short break, subject to satisfactory performance and the needs of the Institution.
(ii) An appointment on contract shall automatically cease on the agreed date unless reappointment has been offered and accepted.
(iii) Before the expiry of the said period of Contract Appointment, work, service of the employee could be terminated by either party by giving one month’s notice or one month’s salary in lieu of notice without assigning any reason whatsoever.

Remember:
Ø  Contractual employee will be liable for the TDS payments and other payments described in the Government Rule.
Ø  Contractual employee cannot be confirmed.
Ø  Contract is to be renewed after the tenure is over if found satisfactory at the discretion of the management.
Ø  Contractual employees are not eligible for the regular employees’ benefits and privileges.


(C) Ad hoc/Provisional/Temporary Appointment
(i). Ad hoc is a Latin phrase which literally means "For this" or "For a special purpose, case, or for immediate reason." It is used to indicate something that is done at the time without planning ahead of time. Ad hoc decisions are decisions made on the fly, in response to a circumstance. Normally Ad hoc appointment is made for first three months.
(ii). Ad hoc appointment is done when an employee dies, resigns in between the academic year. This appointment is done in consultation with Manager and Principal till a regular appointment is done in the beginning of the next academic year.
(iii). Services of an Ad-hoc employee shall come to an end on completion of the specified work for which he/she was employed or on the expiry of the period for which he/she was appointed, whichever is earlier. But, before the expiry of the said period of work, as the case may be, service of the employee could be terminated by either party by giving one month’s notice or one month’s salary in lieu of notice without assigning any reason whatsoever.
(D) Part-time: means an employee who is employed on part –time basis.
(E) Visiting: means a faculty who visits for a fixed period of time during school hours to take specific number of classes for an honorarium.

4.3 Classification of Employees as per role 
  1. Teaching, Non-Teaching / Administrative, Service
  2. Full time, part / half time as per requirement or domain they are attached to.
  3. Visiting / Consultant/ Temporary category who are not on the school muster roll.
Please Note:
Ø  Each category has separate salary structure  / fees / consolidated payment
Ø  Norms are mentioned for deciding the salary structure as per their qualifications.
Ø  Visiting faculty gets either consolidated amount per month or per session fees.
Ø  On confirmation, the candidate moves to new salary scale.
Ø  In the first year of service, May vacation salary will be released only after completion of 11 months of service for a teaching staff.

4.4 Probation before Permanent Appointment
(i). Probation is a trial period during which an employee’s abilities and character (work and conduct) are tested to see whether he/she is suitable for work or for full membership in an Institution. He/she occupies a position only conditionally and may easily be removed for poor performance or for poor conduct.
(ii). All the appointments except for temporary and part time ( as per categories)  employees will be on probation for a period of 24 months and which may be extended/confirmed at the sole discretion of  the Managing Committee.
(iii). The service of an employee on probation may be terminated by the Managing Committee at any time, giving a month’s notice or salary in lieu of notice without assigning any reason whatsoever. Such an employee desiring to leave the service shall give to the School one month’s notice in writing or one month’s salary in lieu of notice.
4.5 Confirmation letter
If the work and conduct of an employee during the period of probation are found to be satisfactory, he/she will become eligible for confirmation on the expiry of period of probation and after the successful probation periods the Managing Committee recommends the confirmation and a written confirmation from the Management through Manager is given to an employee that confirms the terms of his/her job offer including salary and all the allowances from the date of the appointment. (N.B.:- Refer all types of sample appointments letters at the end in Annexure- V)
Remember:
Ø  The employee shall be informed of his confirmation in writing within 3 months of the completion of the Probation period.
Ø  On confirmation, the employee is eligible for increment as per norms, and may be moved to the scale from consolidated salary as the case may be.
Ø  Increments and confirmation salary structures are based on salary and not including the experience or other allowances.
Ø  If the confirmation is withheld due to any reason beyond probation, the employee is not eligible for the increment.
4.6  Who can be confirmed:
  1. Full time regular employees(full time defined by the level demands)
  2. Eligibility only if trained( for teaching staff)
  3. Confirmation only after going through the recommendations by Principal (Please note: a written report is required of the staff on probation for confirmation. So please do file up all the information of work and conduct of a probationer.)



                                                    CHAPTER V: SERVICE AGREEMENT

5.0 What is an Agreement?
An agreement is a legally binding contract (oral or written) between an employer and an employee to follow a specific course of conduct that is enforceable in a court of law or by binding arbitration.

5.1 What is a Service Agreement?
A Service Agreement is a formal contract of employment between an employer and employee where one agrees to provide a specified service to the other.  It is a binding legal agreement that is
enforceable in a court of law or by binding arbitration. . (Refer the required sample of service agreement at the end in Annexure- V)

5.2 What is Annual Confidential Report (ACR)?
Annual Confidential Report is a comprehensive objective assessment of the work and conduct of the employee during the academic year. Assessment of Confidential Report is the main criteria for Confirmation and Promotion.

Writing and maintenance of Confidential Report, therefore, assumes importance, not only in the interest of service but also in the interest of the employee. The Annual Confidential Report should be recorded within one month of the expiry of the report period.

Annual Confidential Report shall be written by the Head of the Institution (Principal) for all the employees (teaching and non-teaching) including Vice-Principal and Headmistress. The Annual Confidential Report for the Head of the Institution (Principal) is written by the Manager/Secretary.

Remember, there should be uniformity in the remarks passed in answer to a particular query. Assessment like, ‘Very Good”, “Good” “Satisfactory” can and should be used when answering individual questions in the proforma (not to be confused with the overall assessment of the individual).

Remarks like “Fairly Satisfactory”, “Quite Good”, and Occasionally Good”, should not be used as they tend to give a negative picture of the employee’s performance. If the performance has been only average it would be better if it is categorically brought out in the report rather than leaving a scope for misunderstanding by inference.

In giving the adverse entries, the officer must remember to quote:
(i)                 The exact instance when the employee/official misbehaved or was found wanting in the performance of his/her duties.
(ii)               Whether he/she was ever reprimanded orally for his/her mistake or slackness.
(iii)             Any other steps the reporting officer took to ensure that the same lapse was not repeated.

Officers would do well to remember that every employee receiving an adverse entry has the right of representation and unless the officer can substantiate the specific instances and the frequency of the lapses he/she is referring to, the Administration has no option but to expunge the remarks for the lack of concrete examples.

5.3 Please note while writing Service Books
1. Photo pasted on the front page should be attested by the Principal.
2. Date of Birth should be entered both in words and figures.
3. Date of Appointment and Confirmation should be recorded in Service Book (both in words and
   figures).
4. No eraser or overwriting or cutting should be made in Service Books.
5. All cuttings in Service Book should be attested by the Principal even if this mistakes was made by
    the clerical staff.
6. Pay fixation should be recorded in Service Book.
7. Copy of Fixation format and copy of date of Birth certificate should be pasted in Service Book.
8. Service verification should be done every year and Principal should attest the service verification.
9. ACR (Annual Confidential Record) should be prepared for all Teachers and other Staff on yearly
    basis and kept in record.
10. Leave Record at the end of the Service Book should also be recorded on half yearly basis showing
      the correct balance of leave at credit.
11. All the document starting from Application for the post to available certificates should be
      numbered and every time when any document is tucked in the service book should carry forward
     that number in order.
12. THE RUBBER STAMPS WHICH ARE TO BE FIXED ON THE SERVICE BOOKS ARE
                                                                    GIVEN BELOW:
IN PURSUANCE OF NOTIFICATION NO. GSR (622)/E DATED 29/8/08 ISSUED BY GOVT. OF INDIA, MINISTRY OF FINANCE (DEPARTMENT OF EXPENDITURE), THE PAY OF THE OFFICIAL IS FIXED AS UNDER ACCORDING TO 6TH PAY COMMISSION IN  THE GRADE PAY OF RS. ……….............................
1. REVISED PAY ON 1.1.2006
2.PAY AS ON 1.7.2006
3. PAY AS ON 1.7.2007
4. PAY AS ON 1.7.2008
5. PAY AS ON 1.7.2009.
                              
  Sd/………………………
         PRINCIPAL
13. Services Verified from………………….. To …………. .... ………from A/Roll
                                                                                  
Sd/.....................................
          PRINCIPAL    
14. Date of Birth is verified from Matric/Hr.Sec.School Certificate/ Other Source.
                            
Sd/…………………………
           PRINCIPAL

Do paste this form given below at the back side of the front cover giving all the details for the ready reference. Give all the possible details and fill in the blanks time to time when required or received any other documents.

NAME OS THE SCHOOL……………………………………………………………………………
DOCUMENTS  AVAILABLE IN THE SERVICE FILE





Date of Application for the Post of a teacher received on:-



Experience Certificate (if Any)…………………



Date of  Birth:



Date of Appointment:



Date of Confirmation:


S.No
DOCUMENTS
EDUCATION
ATTACHED
1
X  - Mark sheet
REG□ CROS□
YES□ NO□
2
X  - Passing Certificate
REG□ CROS□
YES□ NO□
3
XII - Mark sheet
REG□ CROS□
YES□ NO□
4
XII - Passing Certificate
REG□ CROS□
YES□ NO□
5
B.A./B.SC./B.COM./ BP.Ed /BCA/ Mark sheet
REG□ CROS□
YES□ NO□
6
B.A./B.SC./B.COM./ BP.Ed/ BCA/Degree
REG□ CROS□
YES□ NO□
7
B.Ed./ SAVC/JBT/Bl.Ed/NPTT/TTC/NTT Mark sheet
REG□ CROS□
YES□ NO□
8
B.Ed./SAVC/JBT/Bl.Ed/NPTT/TTC/NTT  Degree
REG□ CROS□
YES□ NO□
9
M.A./M.SC./M.COM./MCA/MP.Ed Mark sheet
REG□ CROS□
YES□ NO□
10
M.A./M.SC./M.COM./MCA/MP.Ed Degree
REG□ CROS□
YES□ NO□

ANY OTHER DOCUMENTS

13


14
            








CHAPTER VI: PAY, ALLOWANCES AND PROVIDENT FUND

6.0 What is Pay (Salary)
Pay (salary) is a fixed regular monthly payment made to an employee by an employer for services rendered involving professional knowledge, skill or office work.

6.1 What is a Pay Scale?
A pay scale is a document or table designed to determine how much an employee will earn in his or her job. In this way, the job seeker can get a good idea of how much he or she can expect to earn while working for the Institution.
(i). The scale of the pay and allowances shall be those agreed upon by the appointing authority and the employee.
(ii). The School shall deduct from the salary of the employee any dues legally recoverable, and pay them into the Bank of credit the amounts on behalf of the employees.

6.2 Annual Increment
The annual increment is a yearly increase of some amount, either fixed or variable. Remember, annual increment of pay shall not be automatic, but will be subject to all – round good performance of the employee to the satisfaction of the Managing Committee.

6.3 What is Allowance?
An allowance is an amount of money set aside for a designated purpose. It's different from money that you earn by working.  That money is called wages.

6.4 What is DA?
Dearness Allowance is a kind of Allowance given to worker to bear the cost of living due to the Inflation Rate of the area, so that he / she can at least live his life in "some comfort".

In India, Dearness Allowance is part of a person's salary. It is calculated as a percent of the basic salary and then added to the basic salary along with house rent allowance to get the total salary.

DA is a temporary entity of a salary, it was introduced in 50's or 60's (I don't remember date) and said to be "taken back" in future when the price of general commodities will decrease, and it has never taken back because of the rising price of general commodities year after year.

6.5 What is Housing Rent Allowance (HRA)?
HRA means Housing Rent Allowance. This term is applicable to Indians. If you are located in India, your salary package may contain additional allowance to help you pay your housing rent. In most cases government employees have HRA inbuilt in their salary packages and they get HRA if they do not live in government provided cottages or houses. Rates vary as per rural/urban areas etc.

6.6 What is Travelling Allowance (T.A.)?
Travelling Allowance is a sum of money which an employee is allowed to spend on travelling at a given rate per mile traveled.

6.7 What is City Compensatory Allowance (CCA)
City Compensatory allowance is an additional allowance which enables an employee to bear the high cost of living prevailing in an urban area or in a city. It is paid to compensate cost of living in the city.

Dearness Allowance is also a kind of compensation but it takes into account the general cost of living, definitely variable according to grades of city.

Normally, CCA will be equal to all employees’ right from the Manager to Sweeper. That is why CCA is not calculated as percentage of Basic but paid as a fixed amount whereas DA is paid as percentage of Basic Salary. CCA is mostly for Metro Cities. It is not exempted from tax like HRA. CCA is abolished as per VI Pay Commission 2008.

6.8 What is Provident Fund (P.F.)?
Provident Fund is a fund which is composed of the contributions made by the employee during the time he/she has worked along with an equal contribution by his/her employers. It is calculated as a percentage of his/her salary, say, 12% and is returned to him/her on his /her retirement.

The Provident Found was originally set up in a bid to provide monetary security to employees when they retire. Very often, people find that the golden years of their life is years marked by financial inadequacy and dependency on relatives/children. The Provident Fund is designed to provide the retiring individual with dignity and security. However, over the years, it has developed into a broad plan for social security which covers the retirement, buying houses, medical expenses and related expenses.

6.9 Who is eligible for Provident Fund (P.F.)?
Employees’ Provident Fund act 1952 states that any Institutional establishment which has 20 or more salaried employees is covered under employee provident fund.
 
6.10 What are the features of Employees provident fund?
The features of Employees provident fund are as follows:
  1. In an employee’s provident fund account, every employer has his/her own account on which both employer and employee will contribute.
  2. The rate of contribution of employer is 12% of the salary of employee, out of which 8.33% is diverted to employees provident fund account.
  3. Employee also needs to pay 12% of his/her salary amount.
  4. Employer is also required to pay a contribution of 0.5% of the emoluments towards EDLIS’1976.
  5. An employer is required to pay administrative charges at 1.10% of emoluments towards provident fund charges and 0.01% towards EDLI Scheme 1976.
  6. Interest will be paid to the account of employees at the government rate which is now running @ 8.5% per annum.
  7. If employees want to contribute more than 12% of his salary on his/her account, the law allows employees to do so, but the employer contribution is limited to 12%.
  8. Interest accumulated on the EPF account is exempted from income tax.
  9. Partial withdraw is allowed to employees on special occasion.
  10. Total payment will be paid to the employee or his/her nominee in case of retirement, permanent disablement, death in service or early retirement.
Please Note:
  1. Revenue Stamps should be affixed and signed by the employees every month.  Each page of the Salary register should be signed by the Principal and the Accountant.
  2. Income Tax Deducted from salary payment to staff should be deposited within 7 days from the date of disbursement of salary.
  3. Quarterly returns should be filed without fail.
  4. Each school should obtain a separate TAN No.  PAN NO. Of the Society should be used while filing the returns.
  5. FORM 16 & FORM 16A should be issued to staff and contractors latest by 30th April every
            Year. Failing which penalty can be levied on the school on day today basis.
6.      DECLARATION FORM indicating the PROPOSED SAVINGS for claiming rebate from
           Income Tax should be obtained from Teachers and other staff falling in The Income Tax
            Bracket in the month of April. Based on this Declaration, Income Tax should be calculated &
           equated in 12 months and deducted from April Salary onwards.
7.      Any payment made to a contractor /  professional which is  Rs. 20,000 or more- TDS is to be
            deducted as per rates applicable.
8.      If the contract includes labour & material and the turnover of the contractor is more than Rs.10 lakhs in a year. TDS-DVAT (DELHI VALUE ADDED TAX) is also to be deducted along with TDS. (Remember:TDS is not applicable on goods or materials purchased for any amount.)
9.      A consolidated statement of salary should be recorded in the Salary Register every month
            which is to be signed by the Manager and the Principal.
Regarding PF, please note:
(i).   PF is to be deducted from all employed staff whether Permanent/ for short period/on contract.
(ii). If the staff is employed through an Agency. Please ensure that PF is deducted monthly and 
       deposited in the Bank and each employed staff is given a PF number.
(iii). Nominations forms should be obtained from all employees on appointment. This form will help
        in claiming PF dues and Pension by the relatives from the EPF Department in the event of Death
        of a Staff/Employee.
Please See:
(i). Inspection Book is available in the School Office.
(ii). PF Deposit Challan is kept in the School Office
(iii). PF deducted from staff salary should be deposited latest by 15th of the Month in PF Office.
(iv). Annual Statement of members Account. Form 3-A should be kept in school Office on year-wise.

                                CHAPTER VII: COMMISSION AND PAY COMMISSION
7.0 What is a Commission?
There can be several possible definitions for the term commission. It can be a specially organized group that may have been put together in order to solve some issues or look into a particular matter.

7.1 What is a Pay Commission?
A Pay Commission is a panel of members of the Union Cabinet, Government of India, set up in 1956 for raising the salaries of government employees.

The First Pay Commission was established in 1956, and since then, every decade has seen the birth of a commission that decides the wages of government employees for a particular time-frame.
The Second Pay Commission was set up in August 1957 and gave its report in two years. 
The Third Pay Commission, set up in April 1970, submitted its report in March 1973. 
The recommendations of the Fourth Pay Commission covered the period between 1986 and 1996.  The Fifth Pay Commission covered the period between 1996 and this year. 
The Union Cabinet, under the stewardship of Prime Minister Manmohan Singh approved the setting up of the 6th Pay Commission to revise the pay scales of central government employees in July 2006.  The 6th Pay Commission is headed by its Chairman Justice B N Srikrishna, and has Ravindra Dholakia, J S Mathur and Sushama Nath as its other members.  The Pay Commission was supposed to submit its report in 18 months.

7.2 What is a Pay Band?
A Pay Band is a part of an organized salary compensation plan, program or system. This differentiates the level of compensation given to certain ranges of jobs. In a very simple language we can just define that Pay Band is the gist of so many pay scales given by the 5th pay commission.

There were many numbers of scales in Fifth Pay Commission starting from S1 to S34 but in Sixth Pay Commission, they are merged into four Pay Bands

PB 1   -   for group D & C employees.                         PB 2    -   for group B employees
PB 3   -   for gazette rank                                             PB 4   -    for class one officer
 7.3 What is a Grade Pay: - Grade Pay depends upon your post you are holding or Grade pay is the group     of the staff in which he/she is working.
POST
SCALE/GRADE
ACP
PRESENT SCALE
PAY BAND
GRADE PAY
PRT
Entry Scale
Entry Scale
4500-7000
PB-2(9300-34800)
4200
Senior Scale
ACP  I
5500-9000
PB-2(9300-34800)
4600
Selection Grade
ACP  II
6500-10500
PB-2(9300-34800)
4800
TGT
Entry Scale
Entry Scale
5500-9000
PB-2(9300-34800)
4600
Senior Scale
ACP  I
6500-10500
PB-2(9300-34800)
4800
Selection Grade
ACP  II
7500-12000
PB-2(9300-34800)
5400
PGT
Entry Scale
Entry Scale
6500-10500
PB-2(9300-34800)
4800
Senior Scale
ACP  I
7500-12000
PB-3(15600-39100)
5400
Selection Grade
ACP  II
8000-13500
PB-3(15600-39100)
6600
1.4  What is Fitment Factor (1.86):- Fitment factor is the one which decides the pay in the revised
running Pay Band.
            7.5 How this Fitment Factor   is   established?
              100% = for basic pay
   50%   = for D.P.
   24%   = for DA on basic pay (as on 1.1.2006)
   12%   = for DA on D.P. (as on 1.1.2006)
             7.6 Mathematical Calculation of the result of (1.86)
               100 +    100    +    24    +    24
               100     2 x 100      100      2 x 100
               1+   50 + 0.24 + 12
                      100              100
                1+ 0.50 + 0.24 + 0.12 = 1.86
7.7 How to Calculate your Revised Basic Pay as on 1.1.2006?
Step 1 –Take your Basic Pay (don’t add DP) drawn on 1.1.2006 on the existing Fifth Pay Commission.
             Example:  7700(Basic drawn as on 1.1.2006)
Step 2 –Multiply by the Fitment Factor 1.86 and round off to next multiple of 10. Now this will be the
             Pay in the revised running Pay Band.
Example: Now take the Basic Pay drawn on 1.1.2006(Step 1) – 7700 and multiply by Fitment  
Factor 1.86 = 14322+8 = rounding off to next multiple of ten 14330 (revised running Pay Band))
Step 3 – Take the Grade Pay, as approved by the Government, corresponding to the pre-revised pay-scale.
              Here in the case of 7700, Grade Pay is = 4800
Step 4 – Now add the revised running Pay Band (step 2) and corresponding Grade Pay (step 3). The total of     
              Pay Band and Grade Pay will be the revised Basic Pay as on 1.1.2006.
              Revised Basic Pay as on 1.1.2006   (14330+4800) =19130
Increment July 06 – (19130 x 3%) = 574+6 = 580 Re Basic Pay a on 1.7.06= (19130+580) =19710                Increment July 07 – (19710 x 3%) = 591+9 = 600 Re Basic Pay a on 1.7.07= (19710+600) =20310
Increment July 08 – (20310 x 3%) = 609+1 = 610 Re Basic Pay a on 1.7.08= (20310+610) =20920
7.8 Calculation of Salary
Basic Pay as on 1.7.2008 per VI Pay Commission     = 20920
DA as on 1.1.2009    = 22%that is (20920 x 22%)      =   4602
HRA as on 1.1.2006 = 10% that is (20920 x 10%)     =   2092
Gross Salary                                                                  = 27614
Deduction of P.F. 12%                                                  =   3314
Net Salary in hand                                                        = 24300
Management’s share on 6500 basic                                    780                                             
7.9. RATE AND DATE OF ANNUAL INCREMENT:
(i)     Rate of annual increments will be 3% and the rate of variable increment for high achievers in PB-3 will be 4%
(ii)   There will be a uniform date of annual increment, viz. 1st July of every year. Employees completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. The first increment after fixation of pay on 1.1.2006 in the revised pay structure will be granted on 1.7.2006 for those employees for whom the date of next increment was between 1st July, 2006 to 1st Jan 2007.

7.10 DA Rates taken as on 1.1.2006
0% -from 1.1.2006;      2% -from 1.7.2006;       6% -  from 1.1.2007;     9% -   from 1.7.2007;                  12% -from1.1.2008; 16% - from 1.7.2008;   22% - from 1.1.2009      27% - from 1.7.2009                       35%   from 1.1.2010      45% - from 1.7.2010  
                                                    
                                                        CHAPTER VIII: PROMOTION
                                 (CONDITIONS AND PROCEDURES FOR PROMOTION)

8.0 What is Promotion?
Promotion is the advancement of an employee's rank or position in an Institutional hierarchy system. It may be an employee's reward for good performance i.e. positive appraisal or to give relief from stagnation in service. In this case the residency period changes (entry scale to senior scale to selection grade or entry scale to MACP1 to MACP2 to MACP3).

Residency period (regular service) for grant of benefits under the MACP Scheme shall be counted from the grade in which an employee was appointed as a direct recruit.

The governing principle of promotion in India is generally ‘seniority-cum-merit'. At higher levels of promotion a Departmental Promotion Committee makes promotions out of a list prepared on the basis of 'merit and suitability in all respects with due regard to seniority'. The relative weightage of the two factors of 'seniority' and 'merit' varies from service to service and class to class in India.

8.1 Conditions for Promotion
(i) Promotion shall be earned as a result of demonstrable outstanding conduct and performance in the areas of   
    Scholarship, teaching, administrative, professional duties and other contributions.
(ii) Normally, an academic staff shall be qualified for consideration for promotion after    spending at least five
     years in the service of the Institution.
(iii) Promotion exercise shall begin with an Annual Review of every academic member of staff.
(vi)The recommendation from the Head shall normally include a comprehensive assessment of the candidate’s qualifications, and overall performance in the Institution.

8.2 Kinds of Promotion
(a) Functional Promotion (Normal Regular Promotion)
Functional or Normal (regular) promotional means promotion to a higher rank (NNT to PRT to TGT to PGT if the candidate has qualification for the same). This promotional avenues are available on the basis of vacancies and shall be granted after due screening by a regular Departmental Promotion Committee as per relevant rules/guidelines. Here all normal rules will apply while fixing the pay, the grant of 3% increment on change of Grade Pay is applicable for functional promotion only.

(b) Notional Promotion or Non- Functional Promotion or MACP1, MACP2, and MACP3
If there are no promotional avenues available on the basis of vacancies then three Notional Promotions are available under the 6th Central Pay Commission which are called the Modified Assured Career Progression Scheme which aims at dealing with the problems of genuine stagnation and hardship faced by the employees due to lack of adequate functional promotional avenues. The principle for this promotion lies on the fact that when you grow old, you need more monetary help to look after your health to serve the Institution the best possible way.

As per instructions, the scheme envisages mere placement in the higher Grade Pay/grant of financial benefits through financial up gradation to the Government servant concerned on personal basis and, therefore, neither amounts to functional/ regular promotion nor requires creation of new/additional posts for the purpose. In short, on grant of financial up gradations under MACPS, there shall be no change in designation, classification or higher status. Here Financial up gradation means there will be no pay fixation except addition of difference of Grade Pay.

Financial up gradation are to be granted to those employees on completion of 10, 20 and 30years of regular service who have not earned any regular promotion from the date of appointment in the existing grade. This financial up gradation will be applicable with effect from September 01, 2008.  In other words, financial up gradations as per the provisions of the earlier ACP Scheme (of August, 1999) would be granted till 31.08.2008.

Under MACPS the financial up gradation is purely personal and it does not mean that if the junior got more pay than the senior after MACPS and the senior’s pay should be made par with the juniors pay.

MACPS is allowed up to the highest grade pay of 12,000 in PB-4. The pay shall be increased by 3% of the total pay (Basic pay + Grade pay) before MACP and it would be added with the difference in grade pay.

There shall be no further fixation at the time of regular promotion if it is the same grade pay as granted under MACPS. Financial up gradation will be in next higher grade pay in the hierarchy of Grade Pay and not in the promotional hierarchy (as it was earlier).

Employees, who were granted financial up gradation under ACP scheme after 12 years of service, will be eligible for financial up gradation under MACPS after completion of 20 years and 30 years of service, irrespective of regular promotion given to him/her if any, between his 10 to 20 years of service or between 20 years and 30 years of service. For example if an employee was given 1st ACP under old ACP Scheme after completion of 12 years of service and a regular promotion after completion of 18 years of service, he will be eligible for 2nd MACP after completion of 20 years of service.

In context to sixth pay commission, the Notional Promotion is defined as:
"change from one grade pay to another" or "change in pay band and grade pay” or

CHAPTER IX: RETIREMENT BENEFITS
(GRATUITY, LEAVE ENCASHMENT AND PENSION)

9.0 What is Gratuity? 
Gratuity is a voluntary Payment made by the employer to the employee in recognition of continuous, meritorious services and sincere efforts by the employee towards the organization. Gratuity is a defined benefit plan and is one of the many retirement benefits like Pensions, Provident funds etc. offered by the employer to the employee upon leaving his job. It is also said that in its etymological sense gratuity is a gift especially for services rendered or return for favours received. In other words, it is a gratuitous payment given to an employee on attaining superannuation or physical disablement etc. It is governed under the Payment of Gratuity Act 1972.

The main purpose of the gratuity is to help the employee after the retirement. To meet the post-retiral expenses, it is a kind of assistance to an employee. When employed person becomes unemployed after termination of his service, he will be in need of financial protection. Because of his old age, incapacity etc. he may not be in a position to work again to feed himself and his dependents. Then gratuity protects against loss of income to some extent.

9.1 Who is eligible for gratuity?
The Payment of Gratuity Act, 1972, provides the gratuity to an employee who is working in such an Institution which has 10 or more salaried employees.

9.2 When one gets gratuity?
Gratuity shall be payable to an employee:
(a)    On voluntary retirement after 20 years of continuous service
(b)   On compulsory retirement after 20 years of continuous service or on superannuation.
(c)    on death or disablement due to accident or disease.

9.3 What do you mean by Compulsory Retirement?
Due to ill health or inability to work, the Management can give compulsory retirement after 20 years of continuous service giving all the benefits due to an employee.

9.4 What do you mean by “Superannuation?”
Superannuation in relation to an employee means the attainment by the employee of such age as is fixed in conditions of service as the age of on the attainment of which the employee shall vacate the employment.

9.5 What is basis for gratuity?
Gratuity is based on: 1. Qualifying Service     2.   Emoluments.

9.6  What do you mean by Qualifying Service?
Qualifying Service means the date one has taken the charge of a post to which he/she is first appointed in a permanent officiating / temporary capacity provided officiating / temporary service is followed without break by permanent appointment to same or other post.
(i)  Qualifying service rendered by an employee is rounded off to the next half year while calculating the length of service.
(ii)  Fraction of a year equal to 3 months and above will be treated as completed one half year.
       Example of rounding of qualifying service.
Qualifying service
Years    Months        Days        Equivalent Six Monthly Periods
10              2               28                                                               20
10              3               12                                                               21
12              8               27                                                               25
12              9                 3                                                               26

9.7 What are the periods which are not counted as qualifying service?
These are the periods which are not counted as qualifying service.
(i)   Service rendered before attaining the age of 18 years.
(ii)  Unauthorized absence treated as dies none.
            (iii)  Service rendered as casual labourer before the grant of temporary status.
9.8 What do you mean by Emoluments?
Emoluments mean Basic Pay (including stagnation increments) plus Dearness Allowance immediately before retirement or on the date of death of the employee. Any house Rent Allowance (HRA), special allowance, travel allowance, any other allowance or any other component of your salary cannot be included in this calculation.
9.9 How much do one gets as gratuity?
In simple terms, one gets half a month’s salary (Basic+DA) for each completed year in service in the organization. Thus, if somebody resigns after six years, he/she gets an amount equal to three months’ salary (Basic+DA) as gratuity. The maximum gratuity payable is 16 ½ months’ salary (Basic+DA) for the maximum of 33 years of service.  To be more precise one can calculate his/her gratuity applying this formula:
Gratuity Amount =(Basic+DA) x 15 x no of yrs of service up to max. 33 years
                                                                             30
9.10 How much do one gets as Death Gratuity?
The Amount of Death Gratuity will be calculated as under:
Length of qualifying service                  Amount of Gratuity                                                                
1.  Less than 1 year                                                        2 times of emoluments
2.  one year or more but less than 5 years                       6 times of emoluments
3.  5 years or more but less than 20 years                       12 times of emoluments
4.  20 years or more                          Half of emolument for every completed six                  
                                     monthly period of qualifying service subject to 33 times of emoluments
9.11 Is Gratuity Tax exempted?
Gratuity is not tax exempted if it goes beyond the limit of maximum payable gratuity, Rs. 10, 00,000. Let us study Income Tax (IT) Treatment of Gratuity Proceeds.

Any amount that you receive as gratuity is added to your income for that year under the head “Income from Salary”. However exemption is available up to a certain amount under section 10(10) of the Income Tax (IT) Act. To calculate this exemption, employees are classified in three categories depending on their type of employment and their coverage under the Payment of Gratuity Act, 1972.

(a)   Government employees covered under the Payment of Gratuity Act, 1972. - The entire amount received as gratuity is tax-free for Government employees.
(b)   Non-Government employees covered under the Payment of Gratuity Act, 1972:- The Maximum possible exemption from tax is least of the  3 below:
(i)                 Actual gratuity received
(ii)               Rs. 350,000; through the “Payment of Gratuity (Amendment) Act 2010”, the limit of maximum payable gratuity has been raised to Rs. 10, 00,000 from Rs. 3, 50,000
(iii)             15 days’ salary for each completed year of service or part thereof.
(c)    Non-Government employees not covered under the Payment of Gratuity Act, 1972. Gratuity is Tax exempted up to Rs. 10,00,000/- from 2010-11 as per Income Tax act,1961 U/s 10 earlier it was Rs. 3,50,000/- so need not to worry about tax.
9.12 Supreme Court Judgment on the Payment of Gratuity for Teachers
Teachers not entitled to gratuity: SC
In a significant ruling affecting teachers across India, the Supreme Court has held that they are not entitled to payment of gratuity at the end of their service as they cannot be classified as 'employee' under the provisions of the Payment of Gratuity Act, 1972.
A bench, comprising Justice Shiva raj V Patil and Justice D M Dharmadhikari, gave this ruling while upholding a full bench verdict of the Gujarat high court.
It dismissed an appeal filed by Ahmedabad Private Primary Teachers' Association challenging the high court order.

Under section 2(e) of the Payment of Gratuity Act, 1972, an "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 or not such person is employed in a managerial or administrative capacity."

The government, by a notification dated April 3, 1997, had extended the provision of the Gratuity Act, 1972 to educational institutions employing ten or more persons.
However, the Apex Court after going through the various definitions of employee came to the conclusion that "the teaching staff being not covered by the definition of ‘employee’ can get no advantage because, by notification, educational institutions as establishments are covered by the provisions of the Act."

Writing for the bench, Justice Dharmadhikari said: "We are of the view that even on plain construction of the words and expressions used in definition clause 2(e) of the Act, 'teachers' who are mainly employed for imparting education are not intended to be covered for extending gratuity benefits under the Act."

"Teachers do not answer to the description of being employees who are 'skilled,' 'semi-skilled' or 'unskilled,' the bench said, rejecting the plea that teachers should be treated as included in the expression 'unskilled' or 'skilled.'

After giving the ruling, the bench said that its conclusion that teachers were not entitled to gratuity benefits under the 1972 Act should not be misunderstood.

It said: "Our conclusion should not be misunderstood that teachers, although engaged in very noble profession of educating our young generation, should not be given any gratuity benefit."
"There are already separate statutes, rules and regulations in several states granting gratuity benefits to teachers in educational institutions which are more or less beneficial than the gratuity benefits provided under the Act," it said.

The Apex Court said it was for the legislature to take cognizance of the situation and think of a separate legislation providing for gratuity to such teachers in various establishments where gratuity benefits were not available.

"That is a subject matter solely of the legislature to consider and decide," the Bench said, while dismissing the appeal filed by the private teachers association.

9.13 Parliament passes Gratuity Bill (Updated on Friday, December 18, 2009,)

New Delhi: Parliament on Friday passed a bill for widening the definition of employees for the purpose of receiving gratuity, which will benefit over 60 lakh teachers.
The Payment of Gratuity (Amendment) Bill, which aims at amending definition of employees in the 1972 legislation for covering teachers in private institutions with retrospective effect from April 3, 1997, was passed in the Rajya Sabha.  It was approved by Lok Sabha on December 16.

"Over 60 lakh teachers will be benefited by this amendment," Minister of State for Labour Harish Rawat said winding up the debate on the bill. He said the government has made the amendment with retrospective effect from 1997, accepting the suggestion of the Standing Committee. He also said the government would try to bring before Parliament another amendment in the bill during the next session for raising the current ceiling from Rs 3.50 lakh. "We are discussing the issue with the stakeholders," he said.

Now, the definition of "employee" has been widened for the purpose of gratuity to include any person who is employed for wages, other than an apprentice. It also clears that the terms of such employment may be expressed or implied, in any kind of work, manual or otherwise.

Responding to a demand to mention the term 'teacher' explicitly in the bill, Rawat said it was not incorporated as such on the advice of the Law Ministry.

Rawat also said the government was in the process of changing the law since 2004 after the Supreme Court pointed out that teachers are not covered under the definition of 'employee' under the Payment of Gratuity Act though they are covered under the Employees Provident Fund law.

He ruled out reducing the minimum 5-year norm for availing the benefits of gratuity. "If we reduce it to less than five year, it will be like a wage and no more be a terminal benefit," he said.

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

9.14 Teaching Staff not entitled for Gratuity
The gratuity applicability is governed by the Payment of Gratuity Act. However, till now teachers are not eligible to get gratuity. At the same time, all administrative staff, like clerks, attendants, laboratory assistants etc. and the Principal who also does some kind of administrative work in connection with the school are eligible to get gratuity at the same rate as applicable to employees of industrial and other establishments as per the provisions of the Payment of Gratuity Act. But what is interesting is that by employees are meant only employees employed in administrative functions but not teachers as they are engaged in a NOBLE PROFESSION

However, a bill has been presented to amend the Payment of Gratuity Act incorporating teachers also under the definition of employees so that they would also become eligible to get gratuity. So far no amendment has taken place in the Gratuity Act enforcing the same

9.15 What is a Pension?
In general, a pension is an arrangement to provide people with a regular payment upon retirement when they are no longer earning a regular income from employment. This payment allows them to subsist without working. It is usually not taxed.

CHAPTER X: FEE COLLECTION

9.0 What is Fee?
Fee is an amount of money charged by institutions to cover costs of certain services given by the Institution.

9.1 Introduction
It is found that the fees collected in many Schools under different categories are not (Abibhavak Manasangh V/s Union of India & Others Civil writ petition No. 3008 of 2000) hence  it is better that schools  categorize the fee structure in conformity with the decisions of the Hon’ble High Court of Delhi to avoid any legal action. For guidance the relevant portion from the decision of the Hon’ble High are given in brief below:

            1. One Time Charges (Registration, Admission Fees and Caution Money)
        The first category should comprise of the Registration Fee and all one time charges, levied at the time of admission of the student such as “Admission Fee (Admission Fee is taken Rs.200 only, for new Admission and not more than) and “Caution Money”. It should however, be made mandatory for the schools to refund the Caution Money, with interest thereon at the time of the student leaving the school, without the same being claimed by the student/parents.
        Comment: These are the fees fixed by the Director of Education hence hiking the amount beyond the given limit is an offense and Competent Authorities can take punity action against the offending school.

            2. Tuition Fee 
        Tuition Fee should be fixed in such a manner that it should be able to cover all staff related expenses, the standard cost of establishment including provisions for D.A. bonus, Office cum Administrative expenses, and all Terminal benefits as also all expenditure of revenue nature concerning the co-curricular activities. The pupil-teacher ratio and the ratio between the teaching and non-teaching staff should be the main determinants while arriving at the standard cost.

Tuition fee means fee charged to give educational instruction or teaching. This fee is charged to assist with funding of staff and faculty, course offerings, lab equipment, computer systems, libraries, facility upkeep, and to provide a comfortable student learning experience they are set by the government and paid directly by the student. Admission fee is the fee charged for admission.

Comment: Tuition fee can absorbed many a expenses fall under various Heads of expenditure apart from that incidental savings is also permitted and such savings can be diverted to establish any other recognized school or assist any other school or educational institution, not being a college, under management of the same society or trust by which the first mention school is run. Under Rule 177 of DSER, 1973. Adequate amount (Approx. one month’s gross salary of the staff) be transferred to the Employees Terminal Benefit Fund maintained separately. While fixing the Tuition Fee the recent amendment made in the Income Tax Act, 1961 may be taken under consideration so that it may be parent friendly (“Tuition Fees whether at the time of admission or thereafter, to any university, college, school or other educational institution situated in India for the purpose of full-time education of any two children of the assessed, up to Rs.12, 000 in respect of each such child. However, any development fees or donation or payment of similarly nature shall not be eligible for rebate.)

            3. Annual Charges     
        Remember, a maximum discipline is required in fixing up the Annual Charges .Annual charges should be so determined, as to be sufficient to cover all expenditure of a revenue nature not included in the second category (Tuition Fee), besides “Over- heads” and expenses on exams, on playground, sports equipment, gymnasium, cultural and other co-curricular activities as distinct from curricular activities of the schools.

        Comment: Neither savings nor diversion is allowed from the money collected under the head Annual charges.

            4. Earmarked Fee      
        All “earmarked” levies for the services rendered by the schools, to be recovered only from the “user” students, in respect of the facilities availed of by the latter (like Bus facility, swimming, sketting, cricket, judo etc.). The income from the earmarked levis, should be spend only for the purpose, for which these are collected with the role of the schools, being confined to  that of a catalyst or a facilitator, for managing the service on a “No profit no loss” basis. All transaction relation to the “earmarked” activities should form an integral part of the school account. 

            5. Development Fee   
Besides the above four categories, the schools could also levy a Development Fee, as a capital receipt, annually not exceeding 15% of the total Annual Tuition Fee, for supplementing the resources for purchases, up gradation and replacement of furniture, fixture and equipment, provided the school is maintaining, a Depreciation Reserve Fund, equivalent to the depreciation charged in the revenue account. While these receipts should form part of the Capital Account of the School, the collection under this head along with any income generated from the investment made out of this fund, should however, be kept in a separate “Development Fund Account”. It is used for the continual improvement and upgrading of the school, Construction of New Building / new wing and purchase of all fixed Assets.

Comment:  Proper allocation to and maintenance of Depreciation Reserve Fund will reduce the surplus of income over expenditure to a great extent and the Balance Sheet shall reflect the true picture of the Financial Health of the school.

8.6.1        Conclusion
 Schools are not allowed to charge any other fees other than the above mentioned Fees without the prior sanction/  
 approval of the Director of Education, Delhi. It is always safe to play the game within the rules. Hence the School
 Fee Booklets: should reflect only the following Heads:
  1. Admission Fee
  2. Tuition Fee
  3. Annual Charges
  4. Bus Fees/Earmarked Fee
  5. Development Fee
  6. Late Fee 
CHAPTER X: LEAVE RULES FOR VACATIONAL/ NON VACATIONAL STAFF
10.0 What is Leave?
Leave is a provision to stay away from work for genuine reasons with prior approval of the authorities. It may be   granted for a casual purpose or a planned activity, on medical grounds or in extra-ordinary conditions.

10.1 DIFFERENT TYPES OF LEAVE AVAILABLE TO   CENTRAL GOVERNMENT EMPLOYEES AND A BRIEF DESCRIPTION OF EACH LEAVE
            1. Casual Leave                   
            2. Earned Leave                
            3. Maternity Leave          
            4. Paternity Leave
            5. Half Pay Leave               
            6. Extra Ordinary Leave     
            7. Leave Not Due           
            8. Study Leave
            9. Commuted Leave          
          10. Child Care Leave
10.2 GENERAL CONDITIONS
1.      Leave shall be determined for the calendar year (i.e. January to December)
2.      The Leave will be credited to an employee’s account on 1st of January every year. In case an employee joins after the above date, leave will be granted on pro-rata basis.
3.      No employee shall be entitled to leave during the probationary period (except due to sickness/ personal exigencies). However, such probationary period preceding confirmation will be taken into account while calculating leave entitlement.
4.      Intervening weekly offs and paid holidays will not be counted as part of availed leave.
5.       Employee cannot avail leave as a matter of right.
6.       The Managing Committee/Manager/Principal reserves the right to refuse, revoke or curtail leave as per the exigencies of work.
7.       Except in unavoidable circumstances, applications for leave in writing shall be made in advance; a letter or a phone message giving reasons should reach the Principal on the day of absence. When a phone message is sent, it should be confirmed in writing by the subsequent day. Merely applying for leave will not mean sanction, until and unless the leave is sanctioned by the sanctioning authority.
8.      The employee will not absent himself/herself without prior sanction from the Manager/Principal or will not leave station without having first obtained written permission from the proper authority. In an emergency an application should be sent as soon as possible stating reasons for absence.
9.      Taking Leave or extending leave without sanction will be treated as absence from duty and renders an employee liable disciplinary action.
10.   The absence of an employee for eight days or overstay of sanctioned leave for eight days without sanction makes his/her lose him/her place on the job. The Management shall be within its right to presume that such employee has abandoned the job of his/her accord.
11.  An employee on leave shall be allowed to return to duty before the expire of leave only with the prior permission of the sanctioning authority. However, if required by the Manager/Principal to come to School during these days, they are required to comply without any claim or without any compensatory leave or any remuneration.
12.  Before proceeding on leave, even for one day, the teacher will leave instruction in writing about the work to be carried on during his /her leave.
13.  Non–teaching (non-vocational) employees may be given a weekly off on different days to suit the need of the school.
14.  Persons serving in departments other than vacation departments are not entitled for any break
(autumn break and Winter break) and Summer Vacation.
15.  No employee while on leave shall take up any service or employment elsewhere including private practice   of any kind without obtaining prior sanction of the authority granting leave.
Note: - An application for leave or extension of leave should ordinarily be made in good time before the date from which the leave or its extension is sought. If any employee does not apply within seven days of the expiry of leave for further leave, or has been absent from the school without leave for then school days, the employee may be deemed to have deserted his post.
10.3 CASUAL LEAVE
Casual leave is not a recognized form of leave and is not subject to any rules made by the Government of India. An official on Casual Leave is not treated as absent from duty and pay is not intermitted. Casual leave enables an employee to attend some urgent or unforeseen contingencies.
  1. Every employee is entitled for 8 days casual leave in a calendar year.
  2. An employee joining during the middle of a year may avail casual leave proportionately.
  3. Sundays and holidays falling during the period of casual leave shall not be counted as part of casual leave.
  4. Sundays/public holidays/restricted holidays/weekly offs can be prefixed/suffixed to Casual Leave.
  5. Casual Leave essentially intended for short periods. It should not normally be granted for more than 5 days at any one time except under special circumstances.
  6. Casual leave can be taken for a half day also.
  7. Casual leave cannot be accumulated beyond the calendar year.
  8. An employee on probation/ad-hoc tenure may be granted Casual Leave for many days as completed month of service.
  9. Casual Leave can be taken while on tour, but no daily allowance will be admissible for the period.
  10. LTC can be availed during Casual Leave.
  11. Application for casual leave has to be made at least two days in advance. However due to reasons beyond the employee’s control, if he/she could not obtain prior sanction it shall not be treated as a breach of code of conduct if he/she submits the application immediately on joining the duty along with an explanation for proceeding on leave without prior sanction.
  12. Three late arrivals (not exceeding 1 hour each) and/or early departure (before one hour of the day end) will be considered as one day of Casual Leave.
10.4 EARNED LEAVE
  1. Permanent non-teaching (non-vacation) employee is eligible for 30 days earned leave during a year which will be calculated at the rate of 2½ days per completed month of service. The credit for earn leave will awarded at a rate of 15 days on the 1st of January and at a rate of 15 days on 1st of July every year.
  2. Every employee serving in vacation departments (Principals, Teachers, Vice Principals, Head Masters, Librarians, Laboratory Assistants) is entitled for 10 days of earned leave in a year i.e. at the rate of 5/6 day for completed calendar month of service (with effect from 5.9.1981).
  3. Earned leave can be accumulated for a maximum period of 300 days during the whole tenure of the employee.
  4. Application for earned leave has to be made at least 7 days in advance.
  5. When an employee retires on attaining the normal age prescribed for retirement under the terms and conditions governing the service the Management shall grant cash equivalent of leave salary for earned leave, if any, at the credit of employee on the date of his or her retirement subject to the maximum of 300 days’ pay admissible on the date of retirement plus D.A. No other allowances shall be payable.
  6. If any employee resigns or quits service he or she may be granted cash equivalent in respect of earned leave at his/ her credit on the date of cessation of service, to the extent of half of such leave at his or her credit subject to a maximum of 150 days.
  7. Maximum earned leave that may be granted at a time shall be 180 days.
  8. A dismissed employee is not entitled for earned leave encashment at his credit.
  9. Earned leave cannot be taken for a half day.
Note: - Regarding time and limit of availing E.L. a consensus decision may be arrived at after seeking  
            the views of the Principals of the schools.
10.5 MATERNITY LEAVE
Maternity leave is granted to women government employee.
1)      Pregnancy: 180 days – Admissible only to employees with less than two surviving children.
2)      Miscarriage/abortion (induced or otherwise): Total of 45 days in the entire service. However, any such leave taken prior to 16.6.1994 will not be taken into account for this limitation. Admissible irrespective of number of surviving children. Application to be supported by a certificate from a registered medical practitioner for NGOs and from AMA for GOs.
3)      The maternity leave is not debited to leave account and full pay is granted. It cannot be combined with any other leaves and counts as service for increments and pension.
4)      The female employee of un-recognized schools and schools situated outside the NCT of Delhi may be granted leave for a period of 90 days as per the provisions of Maternity Benefit Act.
5)      Maternity leave may be combined with leave of any other kind except casual leave.
6)      Application for maternity leave has to be submitted along with medical certificate issued by a Registered Medical Practitioner at least 3 months in advance.
7)      Leave to a female employee on adoption of a child: A leave to a female employee on adoption of a child may be granted leave of the kind DUE and ADMISSIBLE for a period up to one year or till such time the child is one year old, whichever is earlier. However, this facility will not be admissible in case she is already having two surviving children at the time of adoption.
10.6 PATERNITY LEAVE
  1. A male employee with less than two surviving children may be granted Paternity Leave for a period of 15 days during the confinement of his wife i.e. up to 15 days before or up to 6 months from the date of delivery of the child and if such leave is not availed of within this period, it shall be treated as lapsed.. During the period of such leave he shall be paid leave salary equal to the pay drawn immediately before proceeding on leave.
  2. Paternity Leave shall not be debited against the leave account and may be combined with other kind of leave as in the case of Maternity Leave.
  3. This privilege is not extended to employees of un-recognized schools and schools situated outside NCT of Delhi.
10.7 HALF PAY LEAVE
  1. Every employee serving in a department other than vacation department is entitled for 20 day’s half  pay leave * in a year i.e. 5/3 days for each completed calendar month of service.(* Deduction of leave plus half basic pay, half D.A. and other allowances in full.)
  2. From 1st January 1986, half pay leave is credited in advance at the rate of 10 days on the 1st of January and 1st of July every year.
  3. Half pay leave can be availed with or without MC (Medical Certificate) or on private affairs.
  4. Commuted leave not exceeding half the amount of half pay leave may be granted on medical grounds. Before joining the duty the employee has to produce a fitness certificate from a Registered Medical Practitioner.
  5. Application for commuted leave on medical grounds should be accompanied by medical certificate from a Registered Medical Practitioner.
  6. Half pay leave can be accumulated but cannot be enchased.
Please note the following regarding Half Pay Leave:
From 1st September 2008, Half Pay Leave will be applicable to Teachers, Principals, Headmasters, Librarians, Laboratory Assistants and Water man working in school.
For the year 2008, Service Book will be credited with 5 EL in January, 2 EL in July and 7 HPL from September 2008 to 31st December 2008.
From 1.1.2009 : Half Pay Leave is credited in advance at the rate  of 10 days on the 1st of January and 1st July every year.
New Appointments made during the year: - Half Pay Leave will be credited in Advance at the rate of 5/3 for each completed calendar month of service he/she is likely to render in the half year in which he/she is appointed.
The credit for the half year in which a staff is due to retire/ resigns will be afforded at the rate of 5/3 days for each completed calendar month of the service in that half year up to the date of retirement/ resignation.
The Credit for the half year in which the staff is removed/dismissed from service or dies in service will be afforded at the rate of 5/3 days for each completed calendar month up to the end of the calendar month preceding the last calendar month of service.
HALF PAY LEAVE MAY BE GRANTED ON MEDICAL CERTIFICATE OR ON PRIVATE AFFAIRS.
When Half Pay Leave is taken on Medical grounds i.e. leave is commuted, twice the amount of such leave shall be debited against the half pay leave due. 2 half pay leave will be reduced from the balance due for 1 day leave taken on medical ground. Medical & Fitness certificate is MUST when leave is taken on commuted
Half Pay Leave.
Commuted Leave (Half Pay leave taken on Medical Grounds) can be granted even when Earned Leave is due.
Commuted Leave not exceeding half the amount of Half Pay Leave due can be granted on Medical Certificate.
Commuted Leave can be taken WITHOUT MEDICAL CERTIFICATE ON THE FOLLOWING GROUNDS:
•       Up to a maximum of 90 days in the entire service if utilized for an approved course of study certified to be in public interest.
•          Up to maximum of 60 days by a female staff if it is in continuation of maternity leave.
•          Up to a maximum of 60 days by a female staff with less than two living children if she adopts a child less than one year old.
Commuted Leave can be granted only when the leave sanctioning authority is satisfied that there is a reasonable prospect of the staff returning to duty on its expiry.  So it cannot be granted as leave preparatory to retirement.
If Half Pay Leave is taken on Private Affairs:  Half Salary will be deducted for each Day leave is taken (Basic +Grade Pay & D.A.).If half pay leave is taken for the full month T.A. WILL BE DUDUCTED IN FULL in addition to the above.
10.8 EXTRA ORDINARY LEAVE (Leave without pay)
Extraordinary leave is granted to an employee when no other leave is admissible. This is known as ((Leave without pay). This type of leave is granted at the sole discretion of the Management.

PLEASE NOTE

When a member of staff remains absent after refusal of leave or after the expiry of sanctioned period of leave, it will be treated as “Dies Non” i.e. no salary for period of absence, stoppage of increment due for the year. In extreme cases this can also lead to a break in service which means in effect a fresh appointment and loss of accumulated leave, gratuity and other financial benefits. The above will not apply to casual leave provided the period of absence does not exceed 8 days. In the case of summer vacations all vacation staff are expected to join duty on the first day after the summer vacation and absent from duty thereafter will be treated a “ Dies Non”.
While isolated case of late attendance by not more than an hour can be condoned, habitual late comers should be warned in writing, and if the person persists in coming late to work, he/she should be penalized by deducting half day’s casual leave from his/her casual leave for each day of late attendance.

The Principals are to refer all cases of absence without authorized leave or overstay of authorized leave to the Chairman of the School Managing Committee through the Manager of the School for necessary order.
10.9 COMMUTED LEAVE
Commuted leave not exceeding half the amount of half-pay leave due can be taken on medical certificate. Up to a maximum of 90 days can be taken during the entire service without medical certificate where such leave is utilized for an approved course of study certified to be in university interest. It can be taken  up to a maximum of 60 days can be granted to a female employee in continuation of maternity leave without medical certificate and up to a maximum of 60 days can be granted without medical certificate to a female employee with less than two living children, on adoption of a child less than one year old. Commuted leave may be granted at the request of the employee even when earned leave is due to him.
10.10 LEAVE NOT DUE
Leave not due is granted when there is no half-pay leave at credit and the employee requests for the grant of Leave Not Due.  Temporary officials with one year’s service and suffering from TB, Leprosy, Cancer or Mental illness may also be granted LND if the post from which the official proceeds on leave is likely to last till his return.
It is granted only medical certificate if the leave sanctioning authority is satisfied that there is a reasonable prospect of the employee returning to duty on its expiry.  It may be granted without medical certificate in continuation of maternity leave and may be granted without medical certificate to a female employee with less than two living children, on adoption of a child less than one year old. The amount of leave should be limited to the half-pay leave that the employee is likely to earn subsequently.
Leave not due during the entire service is limited to a maximum of 360 days and  due will be debited against the half-pay leave that the employee may earn subsequently.
10.11 STUDY LEAVE
Study leave may be granted to all government employees with not less than five years’ service for undergoing a special course consisting of higher studies or specialized training in a professional or technical subject having a direct and close connection with the sphere of his duties as a civil servant.
The course for which the study leave is taken should be certified to be of definite advantage to govt from the point of view of public interest and that particular study should be approved by the authority competent to grant leave.
The official should submit a full report on the work done during study leave. Maximum of 24 months of leave is sanctioned. In the case of CHS officers 36 months of leave can be granted at a stretch or in different spells.           
Study leave will not be debited to the leave account and may be combined with other leave due.  Study leave is not granted for studies outside India if facilities are available in India and to an official due to retire within 3 years of return from the study leave.
10.12 CHILD CARE LEAVE
Woman employees having minor children may be granted Child Care Leave by an authority competent to grant leave for a maximum period of 730 days (2 years) during their entire service for taking care of up to two children., whether for rearing or to look after any of their needs like examination, sickness, etc.
Conditions for Child Care Leave
1. Child care leave shall not be admissible if the child is eighteen years of age or older equal to the pay drawn immediately before proceeding on leave.
2. It can be availed in more than one spell.
3. It cannot be debited against the leave account.
4. It may be combined with leave of the kind due and admissible.
10.13 What is ‘Leave Account’?
‘Leave Account’ is maintenance of a Leave Balance summary of all the leave applicable to an employee. An employee can view the entire leave details in tabular format specifying his/her year-start balance, year-end balance and the current balances.  
10.14 What is leave encashment?
Simply put encashment of the paid leave that you have and which has not been utilized is called 'leave salary' or Leave Encashment.
10.15 Is Leave encashment taxable?
Leave encashment received at the time of retirement is fully exempted in the case of Government Servants. In the case of non-Govt. employees, leave encashment is exempted to the extent of the least of the following four amounts: -
  • Rs. 3,00,000/-
  • Ten months' average salary; 
  • Cash equivalent of the leave due at the time of retirement;
  • Leave encashment actually received at the time of retirement.
Here the average salary means the average of the salary drawn during the last ten months before retirement.
10.16 LEAVE ENCASHMENT FORMULA
Encashment of  Earned leave is the cash equivalent of leave salary for the period of  leave not availed  at the time  retirement restricted to  300 days  and is calculated as under :-
(Basic pay + DA) X  No of days of unveiled earn leave at credit subject to maximum of 300 days.
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Please Note:
On termination of service by notice: -      Encashment of EL up to 300 days is allowed.
One resignation or quitting service: - Encashment up to half of such leave to his credit, Subject to maximum of 150 days is allowed.
10.17 CALCULATION OF ENCASHMENT OF HALF PAY LEAVE
HPL = (Basic pay/2 + DA) X No of days of HPL at credit subject to maximum of 300 days.
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CHAPTER XI: INCOME TAX, PAN, TAN, TIN, VAT
11.0 What is Income tax?
Income Tax is an annual charge levied on both earned income (wages, salaries, commission) and unearned income (dividends, interest, rents).
Money which you earn from different sources is taxed differently. So if you are a salary earner, your salary income to be taxed will be calculated in a different way from gains. The term "Salaries" includes remuneration in any form for personal service, under an expressed or implied contract of employment or service. Section 17 of Income Tax Act defines salary to include:-  Wages, Pensions or Annuities, Gratuities, Advance of Salary, Any cess, commission, perquisites or profits in lieu of or in addition to salary or wages, Any encashment of leave salary., Any amount of credit to provident fund of employee to the extent it is taxable.
Therefore "salary" includes basic salary, encashment of leave salary, advance of salary, arrears of salary, various allowances such as dearness allowance, entertainment allowance, house rent allowance, conveyance allowance and also includes perquisites by way of free housing, free car, free schooling for children of employees, etc.
Salary is taxable in the year of receipt or in the year of earning of the salary income, whichever is earlier. i.e. if the salary has been received first, then it will be taxable in the year of receipt. If it has been earned first but not yet received then it will be taxable in the year of earning. Salary income is taxable in the hands of individuals only. No other type of person such as a firm or HUF, companies can earn salary income.
There are two basic types Income Tax:-
(1)   Personal income tax :-Personal income tax, levied on incomes of individuals, households, partnerships, and sole-proprietorships; and 
(2)   Corporation income tax:-Corporation income tax, levied on profits (net earnings) of incorporated firms. Remember, Income tax is the most important tax in our country, every person whose total income Exceed Maximum Exemption Limit (MEL) has to deal with Income Tax Act and Income Tax Authorities.






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