The Assam Gratuity Act, 1992
**Registered No.A—12**

## The Assam Gazette

#### EXTRAORDINARY

**8W** **SWIM**

**PU BLIS H ED** **BY A U T H O R IT Y**

**^F 78 f o w ,** **1 tsfjrf^ 19 93 ,** **10 'srtsR, 19i5\*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 SSA M**

**O R D E R S BY T H E G O V E R N O R**

**LEGISLATIVE** **DEPARTME NT: LEGISLATIVE** **BRANCH**

**N O T IF IC A T IO N**

**The 30 h June 1993**

**No LGL. 48/99 /71.—The followirg Act of the Assam** **L'g'slative**

**Assembly which received the assent of the President is hereby publi­**
**shed for general information.**


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696 THE ASSAM GAZETTE. EXTRAORDINARY, JULY 1, 1993

ASSAM ACT NO XIH OF 1993,

(Received the assent ef the President on 24th Jane, 1993)

THE ASSAM GRATUITY ACT, 1992

AN

ACT

to provide for framing of a gratuity fund scheme 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 employees 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**

**meat.**

(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 service

for one year.

(c) “Continuous service” means the period of service

during which an employes is in service without inter­
ruption including service 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.


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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) ‘Employee’ means any person (other than appr­

entice) employed on wages not exceeding two thousand
and five hundred rupees per month or sueh higher
amount as the State Government may, having regard
to the general level of wages, by notification, spceecify
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.

EXPLANATION :—In the case of an employes, who, having

been employed f >r a period of not less than five years on

wages not exceeding two thousand five hundred rupees per

mensem is employed at any time thereafter on wages ex­

ceeding that amount, gratuity, in respect of the period du­
ring which such employee was employed on wages not ex­
ceeding two thousand five hundred rupees per mensem shall
be determined on the basis of the wages received by him
during that period.

i

(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 cr any other person who is,
for the time being, incharge of any tea plantation
or tea factory.

Gent; al Act, (g) ‘Lea plantation’has the meaning assigned to it
69 of 1951 in Clause (f) of Section 2 of the plantation Labour

Act. 1951 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 ard his de­
pendent parents and the widow and children of the
deceased son of the employee ai d depenlent parents

of the wife 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 fee 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|er, Officer as may be appointed

cn this be- atf, that 'she shall continue to be

so regatded, and 4


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**( i i ) in the** **case of female 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 Controlling 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-**

**EXPLANATION : In either of the above two cases if**

**the child of an employee has been adopted by an-**
**other person and if, under the personal law of the**
**adopter adoption ii legally recognised, such a child**
**shall be considered as** **excluded** **irom** **the family**

**of the employee.**

**( j > ‘Superannuation’— in relation** **to an employee**

**m'ans 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 attainmert of which the** **em­**

**ployee shall vacate the employment.**

**( k ) ‘^Vages* means all emolunvnts * 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 payable to**

**him in cash and includes dearness** **allowances** **but**

**does not include** **any bonus. Commisdon,** **Houser**

**Rent Allowance, overtime** **wages and any** **other**

**allowances.**

**0) ‘Gratuity’ means the wage as defined in clause (k)**

**ab ove** **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 cot exceed two thousand five hundred rupees**
**per mensem in any case.**

**fro) ‘B ard of Trustees’ means** **Board of Trustees con­**

**stituted under paia 3 of the As-am Tea Plantations**

**Provident Fund and Pension Fund Scheme, 1968.**

**(n) ‘Scheme’ means The Scheme framed under this Aet.**

**(o) 'Gratuity** **Fund’ means Gratuity** **Fund** **established**

**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.**


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(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 arisirg 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 Scheme framed thereueder.

(2) The Controlling Authority shall work subject to the

control 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 Scheme* for

the establishment of a Gratuity Fund for the employees

£ 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
fied 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 specified in this
behalt in the scheme.

(4) The Scheme, 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 GRATUITY 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. CONTRIBUTION:

(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 five percent of the wage as the State Government
may by notification in the Official Gazette specify.


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700 THE ASSAM GAZETTE. EXTRAORDINARY. JU LY 1 1993

(2) Every employer shall also pay into the Gratuity

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 service. 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 Gratuity Fund

or obtained an insurance from the Life Insurance Corpora­
tion of India under the Payment of Gratuity Act, 1972,

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
fey 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 tie 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 employer 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, 1972 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.


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THE ASSAM GAZETTE, EXTRAORDINARY, JULY 1, 1993 701

(3) If She sum assured in the policy as sisted is found

shorj of as pe’’ provision of tbe Scheme^ the employer
shall pay the balance amount within such time as may
be directed by the Controlling Authority.

9. PAYMENT OF GR AT UITY BENE FIT AND TO

WHO M PAYABLE :

Gratu ity shall be payable to an employee on the

termination of his employment en sup erannuation, retire­
ment or resigna’ion after he has rendered continous

services of not less than live years.

PROVIDED that completion of five years service

shall not be necessary where termination of employment
is due to death and disablement. In case of termination

of employment due to death , gratuity shall be paid to

the nominee and in absence of nom inee, to the legal

heir.

10. QU AN TUM OF GR AT UITY :

The gratuity payable under section 9 shall be com­

puted i.s follows :—

15
jg- X Gratuity Service X Gratu ity Wage subje ct to

maximum of Rs. 50,000/- and minimum of Rs. 1,000/—

as Gratuity.

11. FO RFE IT URE OF GRATUIT Y:

(1) Notwithstanding anything con tained in section 9

the gratuity payable to an employee, whose services

have been terminated for any re t, wilful emission or

negligence causing any dam age or logs tp, or destruc­

tio n of frop erty belonging to the employers, shall be

forfeited to the extent of the dam age or loss so caused.

(2) The Gratuity payable to an employee shall be

wholly forfeited, (a) if the services of such employee

have been terminated for his riotous or disorderly con­

duct or any act of violence on his pa rt.

(b) If she services of such employee have been ter-

minated for any act which constituted *a offence in­

volving mo ral turpitu de , provided th at such offeree is

committed by him in the course of his employment,

(3j Where tbe employee resigns after commencement

of an enquiry on his behaviour, the gratu ity payable shad
rem ain unpaid till such time the enquiry is completed,

12. NO MINAT ION ;

Each employee who has completed one year of service,

shall make, within such time, in such form and in such

manner as provided in the Scheme, nomination for the

purpose o> the proviso to Section 9 of this Act.


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7Q 2 THE ASSAM GAZETTE. EXTRAORDINARY, JULY I, 1993

13. prior ity of payment of contribution s

OVER OTHER DEBTS:—

(!) The amount due in respect of any Contribution

under this Act or any charses incurred in respect of the
administretion of any such Scheme 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 deemed to
be included among the debt under Section 61 of the
Provincial Insolvency Act 1920 ( Act, V of 1920 ) or
Section 530 of the Companies Act, 1956 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; 1961

For the purpose of the Income-tax Act, 1961 the Gratuity

Fund shall be deemed to be recognised Gratuity Fund

within the meaning of Section 43 of that Act.

**15.** PROTECTION AGAINST ATTACHMENT:—

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 RECOVERY OF MONEY DUE FROM**

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. **EMPLOYER 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.


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THE ASSAM GAZETTE, EXTRAORDINARY, .JULY **1, 1993** 703

18. PENALTY :

Whoever makes default in deposit of any contributions

or transfer the Fund created or fails to assign Policy

obtained from Life Insuran ce Corporation of India or

fails to deposit the instalment allowed under this Act

an d the scheme or com ravenes any of the provisions
of the Act and the scheme or fad s to comply with the
direction cf Controlling Au thoiity , he shall be punish­

able with imprisonment for a term which shall not ba

             - less than six months but which may be extended to two

years or with fine which shall not be less ti an ten

thousand rupees but which may be extended to twenty
thousand rupees or with both and in case of a con­
tinuing offence with a further fi ne which n ay extend

upto one thousand rupees for e ’ch day during which

the offence continues.

Cognizance 19. 11) No Co urt shall tak e cognizance of offence punish-
ot ofF-nco a [bl]s [ under the Act and Scheme save ] on a com plaint

made by cr ueder ’h authoiity of the Controlling

Authority.

(7} No Court inferior to that of a Magistiate of the

First Class shall try any offence p u ishable under this

Act

20. PROVISION FOR IMPOSITION OF DAMAGE:—

When an employer makes default in payment of any c ontri­

bution or instalment or in the tra nsfer of any accumulation
required to be transferred under this Act and Scheme or In
the payment of any charges payable under auv other provi­
sion of this Aft or Scheme or in the assignment of the

Policies obtained from Life Insurance Co rporation of India ,
he shall be liable to pay damage not exceeding the amount

in arrear. Pr vided that no order for payment of dama ­

ges shall be passed unless reasonable op po rtu nities of
being heard is given to the defaulter.

21. POWER OF RECQVhRY;—

The Con tolling Au tho rity shall issue recovery certificate to

the Collector wh            - shall recover the certificated dues as an

arrear of Land Revenue.

22 APPEA L:—

(1) Any employer aggrieved by the order of Controlling

Authority imposing damage under section-20 of this Act,

may file appeal with the Chairman of the Board within 30

days of the ord er of the Controlling Authority.


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"Oi THE ASSAM GAZETTE, EXTRAORDINARY, )ULY. 1, 1993

(2} The Cha irman of the B ojrd after giving the emplo­

yer a reasonable opportu nity of being beard may approve

the dam age imposed by the Controlling Au thority under

section 20 or may pass such orders; as may deem fit and

proper,

23, INSPECTORS
»c. '

(1) The Government may, by notification in the Official

Gazette, appoint such employee of the Board, as the Govern­
ment thinks fit, to be the inspe tors for the purposes of

this Act and the Scheme and may define their jurisdiction.

(2) Every Inspector appointe 1 under sub-secth n (1) may,

fo r the purposes of inquiring into the correctness of any
inform ation furnished i con nection with this Act or the

Scheme or for the purpose of ascertaining whether any of
the provisions af this Act or of the Schema have been

com plied with—

**(a)** require an employer to furnish such inform ation as

he may consider necessary in relatio n to the Scheme;

(b) . enter any office or tea plantatio n or tea factory at any

reason able time and with such atststatsce, ii any, as he may

thicks fit, end search the same and require any one found
in charge thereof to produce before him for examination ar.y

accounts, books, registers and ethe r documents in rela­

tion to the employment of employee or the payment of

wages of employee;

(c) examine the employer, his agent or servant or any

other person found in charge of the office or plantation

or factory or whom the Inspector has reasonable cause

to believe to be, or to have been an employee in the

office or plantation or factory ;

(d) make copies of, or tak e extracts from any book,

register or other document main tained in connection with

the Gratuity Fund aad, where be has reason to believe

that any offence under the Act and the Scheme has been

com mitted by an employer, seize, with such assistance,

as he may think fit, such books, registers or other docu­

ments as he may consider relevant;

(t) exercise such oth er powers as the Scheme may provide.

(3i The provisions of the Code of Criminal Pro ced ure,

1973 shall, as far as may be, apply to any search or

seizure, under sub-section (2) as they apply to any search or

seizure made under the autho rity of a wa rra nt issued

un der Section-93 of the said Code.

24. PUBLIC SERVANT

Every Inspector shall be deemed to be a public servant

within the meaning of Section-21 of the Indian Penal Code.


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THE ASSAM GAZETTE, EXTRAORDINARY ■’ ULY. ', 1993 705

25. PROTECTION FOR ACTS DONE IN GOOD FA ITH:—

No suit or other legal proceeding shall lie against the

Government or the -Board or any officer or employee
thereof 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 which 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 mtet tie 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 offices of the Board of

trustees.


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706 TJHJB ASSAM GAZiCTTfa BX TRAO RDINAH Y, JULY 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. The procedure of collection 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 nomination,

10. The Registers 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 aoturl valuation to be paid by the employer.

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.

**UUW AHA'n—Printed and published by the Dy. Director (P) Directorate of Ptg. and**

**Sty, Assam, Guwabats—21 (Ex-Gaaette> No. 135—865—5(0 —1-7-1993**


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