The Assam Gratuity Act, 1992

Assam · state statute

Open in Lexace · Ask the AI about this act

h - 3 1
Registered No.A—12
The Assam Gazette
EXTRAORDINARY
8W SWI M
P U B L IS H E D BY A U T H O R IT Y
^F 78 f o w , 1 tsfjrf^ 19 93 , 10 'srtsR, 19i 5\* R» )
No. 78 Dispur, Thursday, 1st July, 1993. 10th A<adha,
1915 (S. E.)
G O V E R N M E N T O F A S S A M
O R D E R S BY T H E G O V E R N O R
LEGIS LATIV E DE PA RT ME NT : LEGIS LATIV E BRA NCH
N O T IF IC A T IO N
The 30 h June 1993
N o LGL. 48/99 /71 .—The foll owi rg Act of the Assam L'g 'slative
Assemb ly which received the assent of the President is hereby publi
shed for general information.

696 THE ASSAM GAZETTE. EXTRAORDINARY, JULY 1 , 19 93
ASSAM ACT NO XIH OF 1993,
(Received the assent ef the President on 24th Jane, 1993)
THE ASSAM GRATU ITY ACT, 19 92
AN
ACT
to provide for framing of a gratuity fund schem e for employees
employed in the tea factories, t a plantations and for the works
connected therein or incidental thereto.
Preamble Whereas it is necessary to provide for framing of a
gratuity fund scheme for the emplo yees employed in the tea
factories, tea plantations and for the works connected there
in or incidental thereto ;
It is hereby enacted in the Forty-third Year of the
Republic of India in the manner hereinafter appearing;
extem^and’ 1 • U) This Act m?y be called the Assam Gratuity Act,
commence- i ^92
me at.
(2i it extends to the whole of Assam.
(3) It shall come into force on such date as the State
Government may by notification, appoint.
(4) It shall apply to tea plantations and tea factories:
Provided that te i factory or tea plantation to wirch
this Act has become applicable shall continue to be so
applied notwithstanding that number of persons employed
therein at any time after if has become so applicable falls
below teo.
Definitions 2. In this Act, unless the context otherwise requires: —
(a) “Governnaect” meats “the State Government of
Assam”.
(b) “Completed year of Service” meaes-eontinous serv ice
for one year.
(c) “Continuous service” means the period of serv ice
during which an employes is in service without inter
ruption including servic e which may be interrupted on
account of sickness, accident, leave, absence from duty
without leave (not being absence in respect ef which
an order treating the absence or break in service has
been passed in accordance with the standing orders,
rules or regulations governing the employees of the
establishment), lay-off strike or a losk-out or cessation
of work not due to any fault of the employees whe
ther such uninterrupted or interrupted service was
rendered before or aber the commencement of this
Act.

THE ASSAM GAZETTE, EXTRAORDINARY, JULY 1 . 1993 697
(d) ‘Controlling authority’ means an authority appointed
by the State Government under Section-3 of this Act.
(e) ‘Em ployee’ means any person (other than appr
entice) employed on wag es not exceeding two thousand
and fiv e hundred rupees per month or sueh higher
amount as the State Government may, having regard
to the general level of wages, by notification, spceec ify
to do skilled, semi-skilled or unskilled, manual, super
visory, technical or clerical orks whether the terms of
such employment ere expressed or implied and whether
or not such person -is employed in a managerial or
a ministrative capacity.
i
Gent; al Act,
69 of 195 1
EXPLANATION :—In the case of an employes, who, having
been employed f > r a period of not less than fiv e years on
wages not exceeding two thousand fiv e hundred rupees per
mensem is employed at any time thereafter on wages ex
ceedin g that amount, gratuity, in respect of the period du
ring which such employee wa s emplo yed on wages not ex
ceeding two thousand fiv e hundred rupees per mensem shall
be determined on the basis of the wages received by him
during that period.
(f) ‘Employer’means any person who is the proprietor
of a tea plantation and tea factory an I includes a
Managing Agent, Miiuager, Superintendent, Mar aging
Director, Director Leasee c r any other person who is,
for the time being, incharge of any tea plantation
or tea factory.
(g) ‘Lea plantation’has the meaning assigned to it
in Clause (f) of Section 2 of the plantation Labour
Act. 19 51 whe:e ten cr more employees are employed.
(h) ‘Tea Factory’ means any factory manufacturing tea
and employing ten or more persons.
(i) ‘Family’ means (1 ) In the case of male employees,
himself, his wife, his children whether married or
unmarried including adopted children ar d his de
pendent parents and the widow and children of the
deceased son of the employee ai d depenle nt parents
of the wi fe of the employee, PROVIDED that
if an employee proves that his wife has ceased
to be entitled to maintenance under the personal
law govcrjiFg him or the customary law of the
community to hijh the spouse belongs she shall no
longer f ee deemed to be a member of the employee’s
' family, unless the employee subsequently intimates
by express notice in writing to the Controlling
Authority or such Ct|e r, Officer as may be appointed
cn this be - atf, tha t 'sh e shall continue to be
so regatded, and 4

693 THE ASSAM GAZETTE, EXTRAORDINARY. JUEY 1. 1993
( i i ) in the case of fema le employee, herself, her
husband and children of the employee , the dependent
parents of the husband and the widow and children
of the deceased son of the employee and her
dependent parents, PROVIDED that if an employee
by notice in writing to the Contr olling authority
or such other Officer as may be appointed on this
be hd f, expresses her desire to exclude her husband
from the family the hu-band shall no longer be
deemed to be a member of the employee’s family
unless the employee subsequently cancels in writing
any such notice-
EXPL ANATION : In either of the abov e two cases if
the child of an employee has been adopted by an-
other person and if, under the personal law of the
adop ter adoption ii legally recognised, such a child
shall be considered as excluded irom the family
of the employee.
( j > ‘Superannuation’— in relat ion to an employee
m'a ns the attainment bv she employee of such age
as is fix d in the contract t r conditions of service
ss the age on the attainmer t of which the em
ployee shall vacate the employment.
( k ) ‘^V ag es * means all emo lun vnt s * hi ch are earned
by an employee while on duty or on leave in
accordance with the terms and conditions of his
employment and which are paid or paya ble to
him in cash and includ es dearness allowances but
does not include any bonu s. Com misdon, Houser
Rent Allowance, overtime wages and any other
allowances.
0) ‘Gratuity’ means the wage as defined in clause (k)
a b o v e payable on the date prior to the date of exit of
the employee, except seasonal and daily workers, in
which case it would be the average o f the last 3 months
wages prior to the date of exit, provided that Gratuity
wage shall co t exceed tw o thousand five hundred rupees
per mensem in any case.
fro) ‘B ard of Trustees’ means Board of Trustees con
stituted under pa ia 3 of the As-a m Tea Plantations
Provident Fund and Pension Fund Scheme, 1968.
(n) ‘Scheme’ means The Scheme framed under this Aet.
(o) 'Gratuity Fun d’ means Gratu ity Fund establish ed
under the scheme framed under this Act.
(p) ‘Contribution’ means a contribution payable by the
ecs pioyer in respect of his employee covered under this
Act.

THE ASSAM GAZETTE. EXTRAORDINARY, JULY ,1 1993 69 9
(q) ‘Gratuity Service’ means The aggregate of service ren
dered bv the employee rounded to the nearest year. Anv
interrupted service on account of sickness, accident, leave
and cessation of work aris irg out of lcck-out, strike,
or lay-off net due to the fault of the employee before
or after the cotemeacement of the Act shall also be
taken into account.
3. CONTROLLING AUTHORITY
(1) The State Government may, by notification, on the
recommendation of the Borad, appoint an officer to be
the Controlling Authority for administration of this Act
and the Schem e framed thereueder.
(2) The Controlling Authority shall work subject to the
contr ol of the Board .
4, GRATUITY FUND SCHEME :
(1) The State Government may, by notification, in the
Official Gazette, and subject to previous publication fran ed
a scheme to be called 'Assam Gratuity Fund Schem e* for
the establishment of a Gratuity Fund for the emp loye es
£ employed in tea plantations and in tea facxries.
(2) A Scheme framed under Sub-section (1) of this
t Section may provide for all or any of the matter speci
fie d in the Schedule appended to this Act.
(3) The Scheme may also provide that any of its
provisions shill take effect either prospectively or
retrospectively on such date as may be specifie d in this
behalt in the scheme.
(4) The Sch em e, shall have effect notwithstanding any
thing contained in any other law for the time being in
force other than this Act or any instrument having
effect by virtue of any law other than this Act.
(5) The Government may, by notification in the Offi
cial Gazette, add to ascend, very or rescind the Scheme.
5 ADMINISTRATION OF THE GRATUIT Y FUND :
The Gratuity Fund shall be administered by the Board
of Trustees through the Controlling Authority as provi
ded under section 3 of the Act.
6. CONTRIBUT ION:
(1) Every employer shall pay every month into the
Gratuity Fund in respect of every employee in relation
to whom he is the employer, such amount not excee
ding fiv e percent of the wage as the State Government
may by notification in the Official Gazette specify.

700 THE ASSAM GAZETTE. EXTRAORDINARY. JU L Y 1 1993
(2) Every employer shall also pay into the Gratu ity
Fuad contributions at the rate of 60.36 per cent of the
wages received by the employees during the preceding
12 months at the commencement of the Act to cover
up past Gratuity liabilities.
PROVIDED that the Controlling Authority may grant
instalment to liquidate the past liabilities in such manner
and on such conditions and at such rate of interest as
may be provided in the Scheme.
(3) Every employer shall further be liable to pay to
the Gratuity Fund the amount due to any employee during
the pendency of full liquidation of the past liabilities on
termination of serv ice. The amount so paid shall be
adjusted against the past Labilities as mentioned under
sub-section 2 of this Section.
7. POWER TO EXEMPT;
(1) If any employer has already created G ratuity Fund
or obtained an insurance from the Lif e Insurance Corpora
tion of India under the Payment of Gratuity Act, 19 72 ,
he may be exempted from the purview of this Act, if
the Controlling Authority is satisfied that such Fund or
the insurance from the Life Ir-surance Corporation of India
covers the full Gratuity liability in respect of thia employees
coveted under thia Act.
2) In case cf any complaint about non-payment of
gratuity or non-payment of premium to the insurance
fe y the exempted employer, the Controlling Authority shall
serve such employer with a notice to pay the same within
such period, in such manner as raey be specified on the
notice and in case ti e employer fails to do so the
exemption, granted under sub-section (I) of this secion
shall he revoked.
8. TRANSFER OF FUND :
(1) Where the exemption granted under sub-section (1)
is revoked un Jer sub-section (2) of section 7 of this Act
the emplo yer shall transfer the Gratuity Fund already
created or assigned in favour of the Controlling Authority
the Insurance of Life Insurance Corporation of India
obtained under the payment of Gratuity Act, 19 72 in
su h manner as may be provided in the Scheme.
(2) If any amount transferred under sub -section-1 ) is
found shirt, the employer shall pay the balance amount
within such time as may be directed by the Controlling
Authority.

THE ASSAM GAZETTE, EXTRAORDINARY, JULY 1, 199 3 70 1
(3) If She sum assured in the policy as si st ed is fou nd
shorj of as pe’’ provision of tbe Scheme^ the employer
shall pay the bala nce am ount within such time as may
be directed by the Co ntr olling Autho rity .
9. PAYM EN T OF GR AT UI TY BE NE FIT AN D TO
WHO M PAYABLE :
Gr atu ity shall be pay able to an employee on the
ter mi natio n of his emp loyment en sup era nnuation, ret ire
me nt or res ign a’ion aft er he has rendered con tinous
services of not less than live years.
PR OV IDED th at com pletion of five year s service
shall no t be necessary where termi natio n of em ployment
is due to dea th and disa blem ent. In case of terminat ion
of emp loymen t due to de ath , gr atuity shall be pa id to
the nominee and in abs enc e of nom ine e, to the legal
hei r.
10. QU AN TU M OF GR AT UI TY :
Th e gra tuity payable under section 9 sha ll be com
pu ted i.s follows :—
15
jg- X Gr atu ity Service X Gr atu ity Wage subje ct to
maximum of Rs. 50,00 0/- and minim um of Rs. 1,00 0/—
as Gr atu ity .
11. FO RFE IT URE OF GR A TU IT Y :
(1) No twithstanding anyth ing con tained in section 9
the gra tui ty pay able to an employee, whose servic es
have been ter mi nated for any re t, wilful em ission or
neg lige nce causing any dam age or logs tp, or destruc
tio n of fr op er ty belo nging to the employe rs, shall be
forfeited to the ext ent of the dam age or loss so caus ed.
(2) The Gra tuity pay able to an employe e shall be
wholly forfeited, (a) if the services o f such employee
have been ter minated for his rio tou s or diso rde rly con
duc t or any act of violence on his pa rt.
(b) If she servic es of such employee hav e been ter-
mi nated for any act which const ituted *a offence in
volv ing mo ral turp itu de , provided th at such offe ree is
com mit ted by him in the cours e of his employme nt,
(3j Where tbe employee resign s af te r commen cement
of an enq uiry on his beh aviour , the gratu ity paya ble s had
rem ain unpaid till such tim e th e en qu iry is completed,
12. NO M IN AT IO N ;
Eac h employee who has com pleted one ye ar o f servic e,
sha ll make, with in such tim e, in suc h form and in such
ma nn er as provided in the Scheme, nomination for the
purpose o > the pro viso to Sec tion 9 of this Act.

7Q 2 THE ASSAM GAZETTE. EXTRAORDINARY, JULY I, 19 93
13 . prior ity of pay men t of contrib ution s
OVER OTHER DE BT S:—
(!) The amount due in respect of any Contribution
under this Act or any charses incurred in respect of the
administretion of any such Schem e shall, where the liabi
lity has accrued before the person has been adjudicated
as insolvent or in the case of a company ordered to be
wound up before the date of such order, be deem ed to
be included among the debt under Section 61 of the
Provincial Insolvency Act 19 20 ( Act, V of 1920 ) or
Section 530 of the Companies Act, 19 56 and are to be
paid in priority to all other debts in the distribution
of the property of the insolvent or the assets of the
Company being wound up, ss the case may be.
(2) Without Prejudice to the provisions of sub-section
(1) of this Section any amount due from an employer
under the provision of this Act or the scheme framed
thereunder shall be deemed to b the first charge on
the assets of the establishment and shall, notwithstan
ding anything contained in any other law for the time
being in force, be paid in priority to all other debts.
14 . FUND DEEMED ]O BE RECOGNISED GRATUITY
FUND UNDER INCOME-TAX AGT ; 19 61
For the purpose of the Income-tax Act, 196 1 the Gratuity
Fund shall be deemed to be recognised Gratuity Fund
within the meaning of Section 43 of that Act .
15 . PROTECTION AGAINST ATTACHM ENT:—
The gratuity payable under this Act to an employee
shall not be liable to attachment in execution of any
decree or order of any Civil, Revenue or Criminal Court.
16 MODE OF REC OVERY OF MONEY DUE FRO M
THE EMPLOYERS
Any amount due from any employer in respect of
any contribution payable the Fund or any charges pay
able by him under any other provisions of this Act or
under any provisions of the Scheme, may be recovered
as an arrear of land revenue.
17. EMP LOY ER NOT TO REDUCE WAGE:—
No employer shall, by reason only of his liability for
any contribution payable under this Act, reduce, whether
directly or indirectly the wages of any employee to
which the employee is entitled under the terms of hii
employment.

THE ASSAM GAZETTE, EXTRAORDINARY, .JULY 1, 1993 70 3
18. PEN ALT Y :
Whoev er mak es default in deposit of any contr ibu tions
or tra nsfer the Fu nd cre ated or fails to assign Policy
ob tai ned from Life Insuran ce Cor por atio n of Ind ia or
fails to deposit the ins talme nt allowed un de r this Act
an d the schem e or com rav ene s any of the prov ision s
of the Act and the schem e or fad s to comp ly wit h the
dire ction cf Co ntr olling Au thoiity , he sha ll be pun ish
able with imprison me nt for a term which shall no t ba
■ less th an six mo nth s bu t whi ch may be extended to two
yea rs or with fine which sha ll no t be less ti a n ten
thou sand rup ees bu t which may be extend ed to twenty
tho usa nd rupe es or with bo th and in case of a con
tinuin g offence with a furth er fi n e which n ay extend
upto one tho usand rup ees fo r e ’ch day durin g which
the offence con tinu es.
Cognizan ce 19. 11 ) No Co urt shall tak e cognizan ce of offence pun ish-
ot of F-n co a bls un de r the Act and Sche me save on a com pla int
mad e by cr ue de r ’h au thoiity of the Con trolling
Autho rity .
(7} No Co urt infer ior to th at of a Magistiate of the
Fi rst Class shall try any offence p u ishabl e under this
Act
20. PROVISION FOR IMPOSITION OF DAM AGE :—
When an employer makes default in p ayme nt of any c on tri
butio n or ins talme nt or in the tra nsfer of any accumu lation
requ ire d to be tra nsfer red under thi s Act and Scheme or In
the payment of any charges payab le un de r auv othe r pro vi
sion of this Af t or Sche me or in the assi gnm ent of th e
Policies obtained from Life Insu ran ce Co rporati on of India ,
he shall be liable to pay dam age no t exceeding the amount
in arrear. Pr vide d that no ord er for paymen t of dama
ges shall be passed unle ss rea sonable op po rtu nitie s of
bein g heard is given to the defau lter.
21. POWER OF RECQVhRY;—
The Con tolling Au tho rity shall issue recovery certificat e to
the Col lect or wh > sha ll recover th e certificated dues as an
ar re ar of Land Rev enue.
22 APPEA L:—
(1) Any employer aggrieved by the orde r of Con trollin g
Aut hor ity imp osin g dama ge un de r sec tion-2 0 of this Act,
may file appea l with the Ch airma n of the Boa rd within 30
day s of the ord er of the Co ntr olling Au tho rity.

"Oi THE ASSAM GAZETTE, EXTRAORDINARY, )ULY. 1, 19 93
(2} Th e Cha irm an of the B oj rd aft er givin g the emp lo
yer a reasonable op po rtu nity of being bear d may app rove
th e dam age imposed by the Con trolling Au thority under
section 20 or may pass suc h ord ers ; as may deem fit and
prop er,
23, INSPEC TO RS » c . '
(1) The Governme nt may , by not ific ation in the Official
Ga zette , ap po int such employee of the Boa rd, as the Gover n
me nt thinks fit, to be the ins pe tors for the purpos es of
this Act and the Scheme an d may define th eir jur isd iction .
(2) Every Inspec tor appointe 1 under sub-secth n (1) may,
fo r the purpo ses of inq uir ing in to the cor rectness of any
inform atio n fur nished i con nection with this Act or the
Schem e or fo r the pur pos e of asc erta inin g whe ther any of
the pro visions af this Act or of the Schema have been
com plie d with—
(a) req uir e an emp loyer to furnish such inform ation as
he may consi der necessary in rela tio n to the Scheme;
(b) . en ter any office or t ea plan tatio n or t ea factory at any
rea son able time and with such atststatsc e, ii any , as he may
thicks fit, en d sea rch the same and req uir e any one found
in cha rge thereo f to pro duce before him fo r examin atio n ar.y
acc oun ts, books, registe rs an d et he r doc ume nts in rel a
tio n to the employme nt of employee or the paymen t of
wages of emplo yee;
(c) examine the employer, his agent or serv ant or any
othe r person fou nd in charge of the office or pla nta tion
or factory or whom the Inspe cto r has reasonable cause
to believe to be, or to have been an employee in the
office or plantat ion or fac tor y ;
(d) make copies of, or tak e extracts from any book,
reg iste r or other doc ument main tai ned in connection with
the Gratu ity Fun d aa d, where be has reas on to believe
th at any offence under the Act and the Schem e has been
com mit ted by an emp loyer, seize, with such assistance,
as he may thi nk fit, such boo ks, registers or oth er doc u
me nts as he may con side r rele van t;
(t ) exercise suc h oth er powe rs as the Scheme may provide .
(3i Th e provisi ons of the Co de of Crimi nal Pro ced ure ,
1973 shall, as far as may be, app ly to any search or
seizu re, under sub -sectio n (2) as the y apply to any search or
seizure made under the au tho rity of a wa rra nt issued
un de r Section- 93 of the said Code.
24. PU BL IC SER VANT
Every Inspector shall be deemed to be a public serv ant
wit hin the mea ning of Section-21 of the Indian Pen al Code .

THE ASSAM GAZETTE, EXTRAORDINARY ■ ’ ULY. ', 19 93 705
25. PROTECTION FOR ACTS DONE IN GOOD FA IT H: —
No suit or other legal proceeding shall lie against the
Government or the -Boa rd or any offic er or employee
thereo f in respect of anything which is in good faith
done or intended to be done under this Act or the Scheme.
26. POWER TO REMOVE DIFFICULTIES
If any difficulty arises in giving effect to the provisions
of the Act, the Government may make such order or
give such direction, not inconsistent with the provisions
of the Act, as appears to it to be necessary or expedient
for the removal of the difficulty, and such order shall
be final.
27. ACT TO OVERRIDE OTHER ENACTMENTS
The provisions of the Act or a y rule made thereunder
shall have effect notwithstanding anything inconsistent
therewith contained in any enactment other than this
Act or in any instrument or contract having effect by
virtue of any enactment other than this Act.
28. POWER TO MAKE RULES : —
The State Government may, subject to previous publication
in the official gazette make rules, for carrying out the
purposes of this Act.
THE SCHEDULE
[(See Section 4(2 ) ]
Matter for whic h provision may ba made in the Scheme f—
1. Employees who shall join the Fund.
2. The time and manner in which contributions shall be made to
the Fund by employers on behalf of employees including past Gratuity
Liability.
3. The payment by the employer of such sums of money as may
be necessaiy to mte t ti e cost of Inspection and the rate at which
and the manner in which the pay nsnt shall be made.
4. Functions of the Board of Trustees, including the Constitution
of any committee for assisting the Board.
5. The opening of regional and other offic es of the Board of
trustees.

706 T JH JB AS SA M GAZiCTTfa BX TR AO RD INAH Y, JU LY 1. 1993
6. The manner in which accounts shall he kept, the investment of
money belonging to t ie Fund in accordance with the directi jds issued
or conditions specified by the Government the preparation of the
budget, the audit of accounts and the submission of reports to the
Government,
7. Th e pro ced ure of col lection of all or any sum of moneys due
from employers.
8 The forms in which emplojee shall furnish particulars about
himself and his family whenever required.
9. The nomination of a persm by a member to receive the
Gratuity amount after his death and the cancellation or variation of
such nominatio n,
10 . The Reg ister s and records io be maintained in respect of the
employees and the returns to be furnished by employers.
11 . Determination and manner of payment of Gratuity.
12 . The cos f of ao tur l valua tion to be paid by the em plo yer.
13. Any other matter which may be necessasy or proper for the
purpose of implementation of the Scheme.
K, LASKAR,
Secretary to the Govt, of Assam
Legislative Department.
U U W A H A 'n —Printed and published by the Dy . Director (P) Directorate of Ptg . and
Sty, Assam, Guwabats—21 (Ex-Gaaette> N o. 135—865— 5 (0 —1-7-1993

‹ Prev All Assam acts Next ›