Assam Gratuity Act, 1992
No: 13 Dated: Jul, 01 1993
AMendment:- Assam Gratuity (Amendment) Act, 2015
THE ASSAM GRATUITY ACT, 1992
ASSAM ACT NO XIII OF 1993
An Act to provide for framing of a gratuity fund scheme for employees employed in the tea factories, tea 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 therein or incidental thereto ;
It is hereby enacted in the Forty-third Year of the Republic of India in the manner hereinafter appearing;
1. Short title, extent and commencement. - (1) This Act may be called the Assam Gratuity Act, 1992.
(2) It extends to the whole of Assam.
(3) It shall come into force on such date as the State Government may by notification in the Official Gazette, appoint.
(4) It shall apply to tea plantations and tea factories within the State Assam;
Provided that tea factory or tea plantation to which this Act has become applicable shall continue to be so applied notwithstanding that number of persons employed therein at any time after it has become so applicable falls below ten.
2. Definitions. - In this Act, unless the context otherwise requires,-
(a) "Government" means "the State Government of Assam".
(b) "Completed year of Service" means continuous service for one year.
(c) "Continuous service" means the period of service during which an employee is in service without interruption including service which may be interrupted on account of sickness, accident, leave, absence from duty without leave (not being absence in respect of 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 lock-out or cessation of work not due to any fault of the employees whether such uninterrupted or interrupted service was rendered before or after the commencement of this Act.
(d) 'Controlling authority' means an authority appointed by the State Government under Section 3 of this Act.
(e) 'Employee' means any person (other than apprentice) employed on wages not exceeding two thousand and five hundred rupees per month or such higher amount as the State Government may, having regard to the general level of wages, by notification, specify in any tea plantation or tea factory or works connected thereto skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical works Accountants, Medical Staff and teachers whether the terms of such employment are expressed or implied and whether or not such person is employed in a managerial or administrative capacity.
Explanation. - In the case of an employee, who having been employed for 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 exceeding that amount, gratuity, in respect of the period during which such employee was employed on wages not exceeding two thousand five hundred rupees per mensem shall be determined on the basis of the wages received by him during that period.
(f) 'Employee' means any person who is the proprietor of a tea plantation and tea factory and includes a Managing Agent, Manager, Superintendent, Managing Director, Director Leasee Chairman/President/Secretary of a co-operative Society, person or authority appointed by the Central or the State Government in case of tea plantations or tea factories belonging to or under the control of the Central or State Government, Executive Officer of any other body or authority in case of tea plantations or factory belonging to any other body or authority, person/persons who is/are for the time being in charge of the plantation or factory on any contract or agreement or by virtue of order of any Court or any other person who is, for the time being, incharge of any tea plantation or tea factory.
(g) 'Tea plantation' has the meaning assigned to it in Clause (f) of Section 2 of the Plantation Labour Act, 1951 (Central Act 69 of 1951) where ten or more employees are employed or were employed on any day of preceding twelve months.
(h) 'Tea Factory' means any factory manufacturing tea where ten or more persons are employed or were employed on any day preceding twelve months.
(i) 'Family' means -
(i) in the case of male employees, himself, his wife, his children whether married or unmarried including adopted children and his dependent parents and the widow and children of the deceased son of the employee and dependent 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 governing him or the customary law of the community to which the spouse belongs she shall no longer be 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 other Officer as may be appointed on this behalf, that she shall continue to be so regarded, and
(ii) 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 behalf, expresses her desire to exclude her husband from the family the husband 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 another person and if, under the personal law of the adopter adoption is legally recognised, such a child shall be considered as excluded from the family of the employee.
(j) 'Superannuation' in relation to an employee means the attainment by the employee of such age as is fixed in the contract or conditions of service as the age on the attainment of which the employee shall vacate the employment.
(k) 'Wages' means all emoluments which 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 variable dearness allowances and additional plucking allowance but does not include any Bonus Commission, House Rent Allowance, overtime wages and any other allowances.
(l) 'Gratuity' means the wage as defined in clause (k) above payable on the date prior to the date of exit of the employee, except seasonal and daily workers, in which case it should be the average of the last 3 months wages prior to the date of exit, provided that Gratuity wage shall not exceed two thousand five hundred rupees per mensem in any case.
(m) 'Board of Trustees' means Board of Trustees constituted under para 3 of the Assam Tea Plantations Provident Fund and Pension Fund Scheme, 1968.
(n) 'Scheme' means the Scheme framed under this Act.
(o) 'Gratuity Fund' means Gratuity Fund established under the scheme framed under this Act.
(p) 'Contribution' means a contribution payable by the employer in respect of his employee covered under this Act.
(q) 'Gratuity Service' means the aggregate of service rendered by the employee rounded to the nearest year. Any interrupted service on account of sickness, accident, leave and cessation of work arising out to of lock-out, strike, or lay-off not due to the fault of the employee before or after the commencement of the Act shall also be taken into account.
3. Controlling Authority. - (1) The State Government may, by notification, on the recommendation of the Board, appoint an officer to be the Controlling Authority for administration of this Act and the Scheme framed thereunder.
(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 framed 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 factories.
(2) A Scheme framed under sub-section (1) of this Section may provide for all or any of the matter specified in the Schedule appended to this Act.
(3) The Scheme may also provide that any of its provisions shall take effect either prospectively or retrospectively on such date as may be specified in this behalf in the scheme.
(4) The Scheme shall have effect notwithstanding anything 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 Official Gazette, add to amend, vary 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 provided under section 3 of the Act.