The Kerala Small Plantation Workers' Welfare Fund Act 2008

ACT 17 OF 2008
THE KERALA SMALL PLANTATION WORKERS' WELFARE FUND ACT,
2008 *
An Act to provide for the constitution of a Fund for promoting the welfare of,
and to pay pension to, the workers in small plantations in the State of
Kerala and for certain other matters connected therewith.
Preamble.—WHEREAS, it is expedient to provide for the constitution of a
Fund for promoting the welfare of, and to pay pension to, the workers in small
plantations  in  the  State  of  Kerala  and  for  certain  other  matters  connected
therewith.
BE it enacted in the Fifty-ninth Year of the Republic of India as follows:—
1. Short title, extent and commencement .—(1) This Act may be called the
Kerala Small Plantation Workers' Welfare Fund Act, 2008.
(2) It extends to the whole of the State of Kerala.
(3) It shall come into force at once.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) "Board" means the Kerala Small Plantation Workers' Welfare Fund
Board constituted under section 6;
(b)  "Chief  Executive  Officer"  means  the  Chief  Executive  Officer
appointed under sub-section (1) of section 9;
(c) "contribution" means the sum of money payable to the Fund in
accordance with the provisions of section 5;
(d) "employer" in relation to a plantation, means the person who has the
ultimate control over the affairs of the plantation, and where the affairs of any
plantation are entrusted to any other person (whether known as a managing
agent or manager or superintendent or by any other name) such other person
shall be deemed as the employer in relation to that plantation;
(e)  "family"  means  wife  or  husband,  minor  sons  and  unmarried
daughters of a plantation worker and includes his father, mother and mentally
retarded  or  physically  handicapped  or  widowed  children  who  are  solely
dependant upon him;
* Received the assent of the Governor on the 1st day of April,2008 and published in the Kerala Extraordinary 
Gazette No. 664 dated 1st April,2008.
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(f)  "Fund"  means  the  small  Plantation  Worker's  Welfare  Fund
established under section 3;
(g) "member" means a member of the Fund;
(h)  "plantation"  means  any  land  used  or  intended  to  be  used  for
cultivating one or more than that of rubber, tea, coffee, cardamom, coco, oil
palm or cashew; 
(i) "prescribed" means prescribed by rules made under this Act;
(j) "Schedule" means the Schedule to this Act;
(k) "Scheme" means a Scheme framed under sub section (1) of section
3;
(l) "small plantation" means a plantation having an extent less than five
hectares and where one or more small plantation workers are employed, but
shall not include a plantation as defined in the Plantations Labour Act, 1951
(Central Act 69 of 1951);
(m) "small plantation worker" means a person engaged for doing any
work in a small plantation for not less than ninety days in the preceding twelve
months for wages or reward, whether directly or through any contractor or
agent, of the owner or company or family or Trust or Society and includes any
self-employed person working in his own small plantation having an extent not
more than half hectare.
Explanation.—For the purpose of this Act, if any question arises as to whether
a person is a small plantation worker or not that question shall
be referred to the Board, or to an officer authorised by the Board
in this behalf, and the decision of the Board/ his thereon shall be
final;
(n) "year" means the financial year.
3. Small Plantation Workers' Welfare Fund Scheme.—(1) The Government
shall, by notification in the Gazette, frame a Scheme to be called "the Kerala
Small Plantation Workers' Welfare Fund Scheme" and there after as soon as
may constitute a Fund in accordance with the provisions of this Act and the
Scheme.
(2) The Fund shall vest in the Board and be administered by the Board.
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(3) Subject to the provisions of this Act, the Scheme may provide for all
or any of the matters specified in the Schedule.
(4) The following shall be credited to the Fund, namely:-
(a) the contributions specified under section 5;
(b) the amount borrowed by the Board under section 10;
(c) damages realised under section 19;
(d) grants, loans or advances given by the Government of India, the
State Government, any local authority institution or any institution;
(e) any donation from any other manner in accordance with law;
(f) any amount raised by the Board from other sources to augment the
resources of the Board;
(g) any fee levied under the Scheme;
(h) any other amount to be credited to the Fund under the provisions
of the Scheme.
(5)  Fund  may  be  utilised  for  all  or  any  of  the  following  purposes,
namely:—
(a) for payment of pension to a member who is unable to work due to
infirmity or has completed the age of sixty years;
(b) for payment of family pension;
(c) for payment of financial assistance to a member who is suffering
from permanent disability;
(d) for payment of loans or grants to a member to meet expenses in
connection with the marriage of daughters or for expenses in connection with
the  death  of  member  or  dependant  or  for  expenses  for  construction  or
maintenance of his house;
(e) for providing maternity benefits to women workers employed in
plantations;
(f) for providing facilities for treatment and education to the member
and his family members;
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(g) to provide for loan if a member is not having his own land or
residential house, to purchase such land or land with building for him/her.
(h) to provide for the necessities in relation to the education of the
Children of Plantation workers.
(i) for any other purpose stated in the Schedule and Scheme.
(6) The Government may, by notification in the Gazette, add, amend or
modify anything to the Scheme either prospectively or retrospectively.
(7) The Scheme framed under sub-section (1) or the notification under
sub- section (6) shall be laid, as soon as may be, after it is issued, before the
Legislative Assembly while it is in session for a total period of fourteen days,
which may be comprised in one session or in two successive sessions, and if,
before the expiry of the session in which it is so laid or the session immediately
following, the Legislative Assembly makes any amendment in the Scheme or
notification, or decides that the Scheme or notification should not be issued, the
Scheme or notification shall thereafter have effect only in such amended form
or be of no effect, as the case may be; however that any such amendment or
annulment shall be without prejudice to the validity of anything previously
done under the Scheme or the notification, as the case may be.
4.  Saving  of  certain  rights  and  privileges.— On  the  date  of
commencement of this Act, any privileges, which have been provided by the
employer to the worker shall not be denied or reduced by the reason of payment
of contribution.
5. Contribution to the Fund. —(1) Every plantation worker shall contribute
for every half year 1[one hundred and eighty rupees] each to the Fund.
(2) Every employer shall contribute to the Fund every half year an
amount of  2[one hundred and eighty rupees] equal to the contribution of the
worker to the Fund.
(3) Every self-employed member shall contribute for every half-year
3[three hundred and sixty rupees]each to the Welfare Fund.
(4) The Government shall contribute to the Fund at the rate of sixty
rupees for half year for each worker/each self-employed person.
1 Substituted by Act 26 of 2021 ( w.e.f 30-7-2020).
2 Substituted by Act 26 of 2021 ( w.e.f 30-7-2020).
3 Substituted by Act 26 of 2021 ( w.e.f 30-7-2020).
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(5) The contribution shall be paid to the Chief Executive Officer or to
any officer authorised by the Board in this behalf.
6. Constitution of the Board.—(1) The Government may, by notification in
the Gazette, constitute with effect from such date as may be specified therein, a
Board by name "the Kerala Small Plantation Workers' Welfare Fund Board" for
the  administration  of  the  Fund,  to  supervise  and  exercise  the  functions
including the payment of financial assistance from the Fund.
(2) The Board shall be a body corporate by name aforesaid, having
perpetual succession and a common seal and shall, in the said name, sue and be
sued.
(3) The Board shall consist of fifteen Directors as may be nominated by
the Government as hereinafter provided, namely:—
(i) five members representing the plantation workers;
(ii) five members representing the employers;
(iii) five members representing the Government.
(4) The Government may appoint one of the Directors of the Board to
be the Chairperson.
(5) The Government shall publish in the Gazette, the names of the
Chairperson and the Directors of the Board.
(6) The Board shall administer the Fund vested in it, in such manner as
specified in the Scheme.
(7) The Board may, with the previous approval of the Government,
delegate the powers and functions under this Act or the Scheme as it may
consider necessary for the efficient administration of the Fund to the Chief
Executive  Officer,  subject  to  such  condition  and  restrictions  as  may  be
specified.
7. Term of office of the Directors .—(1) A Director nominated under sub-
section (3) of section 6 shall hold office for a period of three years from the
date of such nomination:
Provided that a Director may continue as Director till the appointment of
his successor.
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(2) Notwithstanding anything contained in section 8, the Government
may, at any time for the reasons to be recorded in writing, remove any Director
of the Board from his office, after giving him a reasonable opportunity of
showing cause against the proposed removal:
Provided that if the Government are of the opinion that it is not expedient
in the public interest to record the reasons in writing or to give an opportunity,
it shall not be necessary to record in writing the reasons for removal or to give
an opportunity of showing cause against the proposed removal.
(3) Any Director may resign his office, by giving notice in writing to
the Government, but shall continue in office until the resignation is accepted by
the Government.
(4)  A  casual  vacancy  of  the  Director  may  be  filled  up  by  the
Government and the Director so appointed shall hold office for the unexpired
term of office of the Director in whose vacancy he is appointed.
8.  Removal  of  non-official  Directors.—(1)  The  Government  may,  by
notification in the Gazette, remove any non-official Director of the Board from
the said position on the following reasons.—
(a) If he absents himself for three consecutive meetings, without the
permission of the Board:
Provided that such absence may be condoned by the Board for sufficient
reasons before the publication of the notification in the Gazette;
(b) If the Government are of the opinion that he is ineligible to function
as Director or has become incapable or the continuance of such Director by
abusing his position is detrimental to the public interest:
Provided that before removing a Director under this sub-section, he shall
be  given  a  reasonable  opportunity  to  show  cause  why  he  should  not  be
removed.
(2) A non-official Director of the Board removed under clause (a) of
sub-section (1) shall be disqualified for re-nomination as a Director of the
Board for a period of three years from the date of his removal, unless otherwise
ordered by the Government.
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(3) A non-official Director of the Board removed under clause (b) of
sub-section (1) shall not be eligible for re-nomination until he is declared by an
order of the Government to be no longer ineligible.
9. Appointment of officers and staff .—(1) The Government may appoint a
Chief Executive Officer and such number of other officers and employees as
may consider necessary for carrying out the functions of the Board under this
Act.
(2) The conditions of appointment, service and the scales of pay of the
officers and employees referred to in sub-section (1) shall be such, as may be
prescribed.
10. Power of the Board to borrow .—The Board may, from time to time,
with the previous approval of the Government and subject to such terms and
conditions as may be specified by the Government, borrow the required amount
for carrying out the purposes of this Act.
11. Determination of the amount due. — (1) The Chief Executive Officer
or any other officer appointed under sub-section (1) of section 9 authorised by
him  in  this  behalf  may,  after  making  such  enquiry  as  he  may  consider
necessary, from employer or plantation worker under the provisions of this Act
and the Scheme made thereunder to ascertain the contribution to be received
from the employer or the plantation worker as per the provision of this Act or
the scheme made thereunder.
(2) The Officer conducting the enquiry under sub-section (1) shall, for
the purposes of such enquiry, have the same powers as are vested in a civil
court while trying a suit under the Code of Civil Procedure, 1908 (Central Act 5
of 1908), in respect of the following matters, namely:—
(a) enforce the attendance of any person and examine him on oath;
(b) require the discovery and production of documents;
(c) receive evidence on affidavits;
(d) issue commission for the examination of witnesses.
(3) Any enquiry under this section shall be deemed to be a judicial
proceeding within the meaning of sections 193 and 228 of the Indian Penal
Code (Central Act 45 of 1860) and for the purpose of section 196 of the said
Code.
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(4) No order determining the amount under sub-section (1) shall be
made unless the persons involved have been given a reasonable opportunity of
being heard.
(5) Any person aggrieved by an order under sub-section (1) may within
sixty  days  from  the  date  of  receipt  of  the  order,  prefer  an  appeal  to  the
Government or to any other authority as may be specified by the Government
in this behalf and the decision of the Government or of such authority on such
appeal shall be final.
12.  Provisional  assessment  and  collection  of  contribution.—Every
employer   liable  to  pay  contribution  under  section  5  shall,  pending
determination of the amount due from him under section 11, pay on every three
months by way of an advance contribution an amount equal to one fourth of the
amount payable annually by him according to the latest assessment under the
said section, in the time and manner as specified in the Scheme.
(a) If the advance contribution of the employer is not paid on or before
the due date, the officer authorised under section 11 or the Chief Executive
Officer shall issue a notice to the defaulter showing the amount of arrears, and,
if the amount is not paid within fifteen days of the receipt of such notice, it may
be recovered in the manner provided in section 13 of this Act.
(b) Where the contribution of the worker is not paid within a period of
six months from the due date, the officer authorised under section 11 or the
Chief Executive Officer shall issue a notice to the defaulter to clear of the dues
and even after the date of receipt of such notice and fails to remit the amount
due his membership shall stand cancelled.
(c) An application for resumption of membership of whose membership
cancelled as per clause (b) of the above shall be entertained by the officer
authorised under section 11 or the Chief Executive Officer, if the applicant
adduces sufficient cause for not remitting the contribution before the due dates
and also expresses his consent in writing for remittance of the entire dues as on
the  date  of  application  together  with  nine  per  cent  interest  thereon.  An
application under clause (c) shall not be entertained, if it is not preferred within
three years from the date of cancellation of the membership.
(d) A plantation worker, not preferring an application for resumption of
membership within three years of cancellation of his membership, is eligible to
get back seventy five per cent of the contribution at his credit.
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13. Mode of recovery of money due from the employer. —Any amount due
from the employer in pursuance of the provisions of this Act or the Scheme
may, if the amount is in arrears, be recovered together with interest thereon at
the rate of nine per cent in the same manner as arrears of public revenue due on
land.
14.  Priority of payment of contribution over other debts .—Where any
employer, liable to pay contribution under section 5, is an adjudged insolvent or
in case such employer is a company and an order for winding up of such
company is made, the amount due from such employer under this Act or the
Scheme shall, where the liability therefore has accrued before the order of
adjudication or winding up is made, as the case may be, deemed to be included
among the debts under section 64 of the Insolvency Act, 1955 (Central Act 2 of
1956) or under section 530 of the Companies Act, 1956 (Central Act 1 of 1956)
which are to be paid in priority to all other debts, in the distribution of the
properties or assets of the insolvent, or the properties or assets of the company
being wound up, as the case may be.
15.  Employer not to reduce wages etc .—No employer shall, by reason
only of his liability for the payment of any contribution to the Fund, reduce,
whether directly or indirectly, the wage of any plantation worker to whom the
Scheme applies or the total quantum of benefits to which the plantation worker
is entitled under the terms of his employment express or implied.
16.  Directors of Board etc. to be public servants .—Each Director of the
Board, the Chief Executive Officer and other officers and members of the staff
of the Board appointed under sub-section (1) of section 9 shall be deemed to be
a public servant within the meaning of section 21 of the Indian Penal Code
(Central Act 45 of 1860).
17. Penalty.— (1) A person, who for the purpose of avoiding any payment
to be made by him under this Act or under the Scheme or of enabling any other
person to avoid such payment, knowingly makes or causes to be made any false
statement or false representation, shall be punishable with imprisonment for a
term which may extend to three months or with fine which may extend to two
thousand and five hundred rupees, or with both.
(2) Any person who contravenes or makes default in complying with
any of the provisions of this Act or the Scheme shall, if no other penalty is
elsewhere  provided  by  or  under  this  Act  for  such  contravention  or  non-
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compliance, be punishable with imprisonment for a term which may extend to
five months or with fine which may extend to five thousand rupees or with
both.
(3) No court inferior to that of a Judicial Magistrate of the First Class
shall try any offence punishable under this Act.
(4) No court shall take cognizance of any offence punishable under this
Act except on a report in writing of the facts constituting such offence made
with the previous sanction of the Chief Executive Officer.
18.  Offences by companies .—(1) Where an offence under this Act has
been  committed  by  a  company,  every  person,  who,  at  the  time,  when  the
offence was committed, was in charge of, and was responsible, to the company
for the conduct of the business of the company, and the company shall be
deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly:
Provided that nothing contained in this sub-section shall render any such
person liable to any punishment contained in this Act, if he proves that the
offence was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any
offence under this Act has been committed by a company and it is proved that
the  offence  has  been  committed  with  the  consent  or  connivance  of,  or  is
attributable to any negligence on the part of, any Director, Manager, Secretary
or any other officer shall be deemed to be guilty of that offence and shall be
liable to be prosecuted against and punished accordingly.
Explanation.— For the purpose of this section, "Company" means any body
corporate and includes a firm or other association of individual
and "Officer of the Company" means the Managing Director,
Director, Secretary, Treasurer or Manger of the Company.
19. Power to recover damages. —Where any person makes default in the
payment of any contribution to the Fund under this Act or the Scheme, the
Board may recover the  defaulted amount with nine per cent interest.
20.  Protection  of  action  taken  in  good  faith.—No  suit  or  other  legal
proceedings shall lie against the Government or any Director of the Board or
any officer or other person in respect of anything which is in good faith done or
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intended to be done under this Act or any rule made thereunder or under the
Scheme.
21.  Directions  of  the  Government.—(1)  The  Government  may,  after
consultation  with  the  Board,  give  to  the  Board,  general  directions  to  be
followed by the Board.
(2) In the exercise of its powers and performance of its duties under this
Act, the Board shall not deviate from any general directions issued under sub-
section (1), except with the previous permission of the Government.
22.  Power  to  order  inquiry.—(1)  The  Government  may,  at  any  time,
appoint an officer not below the rank of a Joint Secretary to Government to
inquire into the working of the Board and to submit a report to the Government.
(2) The Board shall give the person so appointed, all facilities for the
proper conduct of the enquiry and to furnish him such documents, accounts and
information in the possession of the Board, as he may require.
23. Power to supersede the Board .— (1) If, on consideration of the report
under section 22 or otherwise, the Government are of opinion that the Board is
unable to perform, or has persistently made default in the performance of the
duties imposed on it by or under the provisions of this Act or the Scheme or has
exceeded or abused its powers, the Government may, by notification in the
Gazette, supersede the Board for such period not exceeding six months, as may
be specified in the notification:
Provided  that  before  issuing  a  notification  under  this  sub-section,  the
Government shall give a reasonable opportunity to the Board to show cause
why  it  should  not  be  superseded  and  shall  consider  the  explanations  and
objections, if any, of the Board.
(2) On the publication of a notification under sub-section (1),—
(a)  all  the  Directors  of  the  Board  shall,  from  the  date  of  such
publication, be deemed to have vacated their offices as such Directors;
(b) all the powers and duties which may be exercised or performed
by  the  Board  shall,  during  the  period  of  supersession,  be  exercised  or
performed by such officer or officers, as may be specified in the notification;
(c) all funds and other properties vested in the Board shall during the
period of supersession, be vested with the Government.
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(3) On the expiration of the period of supersession specified in the
notification issued under sub-section (1), the Government shall reconstitute the
Board in the manner provided under section 6.
24. Audit of accounts of the Board .—(1) The Board shall appoint auditors
to audit the accounts of the Board.
(2) The accounts of the Board shall be verified and audited once in
every year by such auditors.
25.  Annual report and audited statement of accounts. —(1) The annual
report of the Board shall be prepared under the direction of the Board and after
approval by the Board, a copy of the report together with an audited statement
of accounts shall be submitted to Government before the end of July every
year.
(2) The Government shall, as soon as the annual report is received,
together with the audited statement of accounts, be laid on the table of the
Legislative Assembly.
26.  Bar  of  jurisdiction  of  Civil  Court.—No  civil  court  shall  have
jurisdiction to settle, decide or deal with any question or to determine any
matter which is by or under this Act or the Scheme required to be settled,
decided or dealt with or to be determined, by the Government or the Board or
the Chief Executive Officer or any officer authorised  by the Board.
27.  Special provisions for transfer of accumulation from welfare funds
established by any other law or agreement. —All sums standing to the credit of
a member in any welfare fund established either by any law or by agreement
shall stand transferred to and credited to the Fund established under this Act
and the liability of such member to pay contribution to such welfare funds shall
cease from such date as may be specified by the Government in this behalf.
28.  Power  to  remove  difficulties.—(1)  Where  any  difficulty  arises  in
giving effect  to the  provisions of this Act,  the  Government  may,  by  order
published  in  the  Gazette,  make  such  provisions  not  inconsistent  with  the
provisions  of  the  Act  which  appear  to  them  necessary  for  the  purpose  of
removing the difficulty:
Provided that no such order shall be made after the expiry of two years
from the commencement of this Act.
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(2) Every order made under this section shall as soon as may be after it
is made, be laid before the Legislative Assembly.
29. Power to make rules.—(1) The Government may, by notification in the
Gazette, make rules, either prospectively or retrospectively, for the purpose of
carrying into effect the provisions of this Act.
(2) Every rule made under this Act shall be laid, as soon as may be after
it is made, before the Legislative Assembly while it is in session for a total
period of fourteen days which may be comprised in one session or in two
successive sessions, and if, before the expiry of the session in which it is so laid
or the session immediately following, the Legislative Assembly, makes any
amendment in the rule or decides that the rule should not be made, the rule
shall, thereafter have effect only in such amended form or be of no effect, as the
case may be, so, however, that any such amendment or annulment shall be
without prejudice to the validity of anything previously done under that rule.
SCHEDULE
(See section 3(3))
MATTERS FOR WHICH PROVISIONS MAY BE MADE IN THE SCHEME
1. Registration of plantation workers and employers.
2. The time and manner in which contribution shall be made to the Fund
by or on behalf of the workers and employers under section 5 and the manner
in which contribution may be recovered.
3. The manner in which the contribution of small plantation workers' may
be recovered from different sectors.
4. The constitution of any committee for assisting the Board.
5. The manner in which accounts shall be kept, the investment of moneys
belonging to the Fund in accordance with any directions issued or conditions
specified  by  the  Government,  the  preparation  of  the  Budget,  the  audit  of
accounts and the submissions of reports to the Government.
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6.  The  conditions  under  which  withdrawals  from  the  Fund  may  be
permitted and any deduction or forfeiture may be made and the maximum
amount of such deduction or forfeiture.
7. The form in which a member of the Fund shall furnish particulars about
himself and his family, whenever required.
8. The nomination of a person to receive any family pension of a member
on his death and cancellation or verification of such nomination.
9. The registers and records to be maintained with respect to plantation
workers and the returns to be furnished by the employers.
10. The form and design of any identity card for the purpose of identifying
any member of the Fund and for the issue, custody and replacement thereof.
11. The fees to be levied for any of the purposes specified in the Schedule.
12. The manner in which the sums transferred under section 27 is to be
brought and credited to the Fund.
13. The purpose for which the Fund may be utilised for the welfare of
plantation workers, or their dependants. 
14.  The  procedure  for  defraying  the  expenditure  incurred  in  the
administration of the Fund.
15. The procedure for paying pension, family pension, grants, advance etc.
from the Fund.
16. Any other matter to be provided in the Scheme which is necessary or
proper for implementing the Scheme.

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