The Draft Assam Gratuity Fund Scheme, 1993
Published vide Notification No. GLR. (RC) 78/92/83, dated the 30th September, 1993
(a) 'Act' means the Assam Gratuity Act, 1992.
(b) "The Scheme" means the Assam Gratuity Fund Scheme, 1993 ;
(c) 'Fund' means Gratuity Fund created under this Scheme :
(d) "Board of Trustees" means 'Board of Trustees' constituted under para 3 of the Assam Tea Plantations Provident Fund and Pension Fund Scheme, 1968.
(e) 'Controlling Authority' means the Authority appointed under Section 3 of the Act;
(f) 'Government' means the Government of Assam ;
(g) 'Employer' means any person who is the proprietor of a tea plantation and tea factory and includes a Managing Agent, Manager, Superintendent, Managing Director, Director Lessee or any other person who is the time being in charge of any tea plantation or tea factory ;
(h) 'Employee' means any person (other than an apprentice) employed on wages not exceeding two thousand and five hundred rupees per month or such higher amount as the State Government may, having regards to the general leval of wages, by notification, specify to do any skilled, semi-skilled, unskilled, manual, supervisory, technical or clerical works 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.
(i) 'Security' means State and Central Government Securities mentioned in Section 20 of the Trust Act, 1882 (Central Act 2 of 1882);
(j) 'Existing fund' means a fund created by the Employer recognised under the Indian Income Tax Act, 1961 at the commencement of the scheme ;
(k) 'Financial year' means the year commencing on the 1st day of April and closing on the 31st day of March of the next calendar year ;
(l) 'Form' means the Forms appended to these rule ;
(m) '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 of lock-out, strike or lay off not due to the fault of the employees before or after the commencement of the scheme shall also be taken into account.
(n) 'Gratuity Wages' means the wage as defined in clause (k) of the Act 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 of the last 3 months wages prior to the date of the exit, provided that gratuity wages shall not exceed two thousand five hundred rupees per mensem in any case.
(o) The words and expressions used and not defined in this scheme shall have the meaning respectively assigned to them in the Act.3. Administration of the scheme. - The scheme shall be administered by the Board of Trustees constituted by the Government of Assam under Para 3 of the Assam Tea Plantations Provident Fund and Pension Fund Scheme 1968, through the Controlling Authority as provided in Sections 3 and 5 of the Act. 4. Administrative and financial power. - (1) The Controlling Authority in consultation with the Chairman of the Board of Trustees shall convene meeting of the Board of Trustees, keep records of the meeting and shall take necessary steps for carrying out the decisions of the Board including appointment of Staff and Officers as sanctioned by the Board as per provision under para 6 (2) hereinafter mentioned. (2) The Controlling Authority may without reference to the Board sanctioned expenditure on contingencies, supplies and services and purchase of articles required for administration of the fund subject to financial provision in the Budget and subject to the limit upto which the Chairman may authorise to sanction expenditure on any item from time to time by the Chairman. (3) All sanction of expenditure made by the Controlling Authority in pursuance of the sub-para (2), shall be reported to the Board of Trustees as soon as possible after incurring the expenditure. (4) The Controlling Authority may delegate from time to time to the administrative and financial powers conferred under sub-para (2) of the scheme on item to any, officer under his control to the extent considered necessary by him in consultation with the Board of Trustees for smooth administration of the scheme. 5. Board of Trustees. - The constitution, function, rules and procedure, allowances etc. of the Board of Trustees shall be Governed by the relevant provisions under paras 3, 4, 5, 6, 7, 8, 9,10, 11, 12,13, 14,15,16, 17, 18, and 19 of the Assam Tea Plantations Provident Fund and Pension Fund Scheme. 6. Staff. - (1) The Board of Trustees may appoint a Gratuity Commissioner who shall be an officer drawn from among the senior officers of the Assam Tea Plantations Provident Fund and Pension Fund Scheme with at least 20 years of service under the Board. (2) The Board of Trustees may employ, transfer such officer and staff as mac be necessary for efficient administration of the scheme either by open recruitment or by transferring from the Assam Tea Plantation Provident Fund and Pension Fund Scheme and they shall be maintained in the amalgamated roll of the employees of the Assam Tea Plantations Provident Fund and Pension Fund Scheme, 1968. (3) Regulations regarding recruitment, pay, allowances discipline, superannuation benefit, seniority, promotion and other conditions of service shall be governed by the provision of para 20(b) of the Assam Tea Plantations Provident Fund and Pension Fund Scheme, 1968. 7. Rate of Contribution. - The contribution shall be payable by every employer at the rate fixed by the Government from time to time as on the wages payable to each employee working in Tea Plantation/Tea factories within 30(thirty) days of the payment of wages. 8. Every employer shall within a period of one month from the date of commencement of the scheme also pay to the Gratuity Fund, contribution at 60.36% of the annual wage received by the employees during the preceding twelve months at the commencement of the scheme to cover up the past liabilities of the employer : Provided that any employer on application may be allowed by the controlling Authority for payment of the past liabilities in instalment with interest within a month of the commencement of the scheme along with necessary Bank Guarantee for the entire amount of past liabilities if not exceeding eighty four equal monthly instalments. Provided further that first such instalment of 20% of the past service liability with interest at the rate fixed by the controlling Authority shall be paid within 90 (ninety) days from the date of inception of this scheme ; and the balance amount shall be paid along with interest in equal instalment as fixed by the controlling Authority. 9. The employer shall further be liable to pay gratuity 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 instalments fixed by the Controlling Authority. 10. Procedure of collection. - (1) Every employer shall deposit contribution payable to the Gratuity Fund in respect of the employees, every month in Scheduled Bank by the Controlling Authority within 30 (thirty) days of the payment of the wages. (2) Every employer shall submit every month a statement in Form G.F. 1 of this Scheme showing the number of employee, wages, amount payable etc. along with challan in support of deposit of the contribution to the Gratuity Fund, to the Gratuity Commissioner within the thirtieth day of the following month. 11. Payment of gratuity benefit and to whom payable. - Gratuity shall be payable to an employee on the termination of his employment on superannuation, retirement or resignation after he has rendered continuous service of not less than five years. Provided that completion of five years services 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 the nominee to the legal heir. 12. Nomination. - (1) Each employee who has completed one year of service shall make, nomination in Form G.F.-2 of the Scheme for the purpose of payment of gratuity. (2) An employee may, in his nomination, distribute the amount of gratuity payable to him under the scheme amongst more than one nominee. (3) If an employee has a family at the time of making nomination, the nomination shall be made in favour of one or more members of his family, and any nomination made by such employee in favour of a person who is not a member of his family shall be void. (4) If at the time of making nomination the employee has no family, the nomination may be made in favour of any person or persons but if the employee subsequently acquires a family , such nomination shall forthwith become invalid and the employee shall make, within ninety days a fresh nomination in a favour of one or more members of his family. (5) If a nominee predeceases the employee, the interest of the nominee shall revert to the employee who shall make a fresh nomination in Form G.F.-2 in respect of such interest. (6) Every nomination, fresh nomination or alteration of nomination as the case may be, shall be sent by the employee to his employer who shall keep the same in his safe custody. 13. Mode of payment of Gratuity. - Every employee or the nominee or nominees or the legal heir entitled to gratuity shall send a written applicant to the Gratuity Commissioner through the employer in Form G.F.-3 of the scheme to claim payment of gratuity under the scheme.
(i) Payment of Gratuity under this scheme shall be made by means of a Crossed Cheque in any Scheduled Bank in the name of the employee or the nominee or the legal heir, as may be entitled to.14. Payment of Gratuity by the exempted Employer. - (1) If the amount of gratuity payable to any employee, nominee, or legal heir is not paid by the employer within 30 (thirty) days from the date of receipt of application for payment of gratuity, the employer shall be liable to pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at the Prevailing Bank rate : Provided that no such interest shall be payable if the delay in the payment is due to the fault of the claimant and the employer has obtained permission in writing from the Controlling Authority for the delayed payment on this ground. (2) If there is any dispute as to the amount of gratuity payable to an employee under this scheme, or as to the admissibility of any claim of, or in relation to, any employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the Controlling Authority such amount as he admits to be payable by him as gratuity. (3) Where there is a dispute with regard to any matter specified, the employer or employee or any other person raising the dispute may make an application to the Controlling Authority for deciding the dispute. (4) The Controlling Authority shall, after due enquiry and giving a reasonable opportunity of being heard, determine the matter or matters in dispute and if, as a result of such inquiry any amount is found to be payable to the employee, the Controlling Authority shall direct the employer to pay such amount or, as the case may be such amount as reduced by the amount already deposited by the employer. (5) The Controlling Authority shall pay the amount deposited including the excess amount, if any, deposited by the employer, to the person entitled thereto. (6) As soon as may be, after a deposit is made under Clause (1) of this para Controlling Authority shall pay the amount of the deposit-
(a) to the applicant where he is the employee or
(b) where the applicant is not the employee, to the (nominee or as the case may be, the guardian of such nominee or) heir of the employee if the Controlling Authority is satisfied that there is no dispute as to the right of the applicant to receive the amount of gratuity.15. Duties of employers. - Every employer, whether in the exempted or unexempted category, shall send to the Gratuity Commissioner returns in Form G. F-4 of the scheme and at the commencement of the scheme and in the month of April in every year. 16. Contribution register. - Every employer shall maintain such records in relation to the amounts due and deposited to the Gratuity Fund by him on a monthly basis as the Gratuity Commissioner may from time to time direct. For this purpose they will maintain a contribution register in the approved format. 17. Payment of gratuity register. - Every Employer shall maintain a payment Register in respect of payment of Gratuity made to any employee in such manner as may be directed by the Gratuity Commissioner. 18. Direction of Gratuity Commissioner. - The Gratuity Commissioner may issue such directions to the employers as he may consider necessary or proper for the purpose of administering this Scheme in the field of record keeping and otherwise and it shall be the duty of every employer to carry out such directions and furnish such other information in specified format as may be required of his by the Commissioner. 19. Inspection of records and registers by the Gratuity Commissioner and other officer. - Every employer of exempted or non-exempted units shall whenever the Gratuity Commissioner or any other officer authorised by him in this behalf, directs, produce before him such records and Registers then in his possession, for inspection. 20. Administration account. - All expenditure in connection with administration of the Scheme shall be met out of its interest incomes. A separate Bank account should be opened with any Bank as decided by the Board of Trustees. The said Bank account will show the receipts transferred from the interest account to be maintained separately and all payments made. 21. Inspection charges. - All exempted tea plantations/tea factories shall be required to pay an inspection charge every year at a rate fixed by the Board of Trustees. 22. Gratuity fund account. - All amounts received from the employers under the Gratuity Scheme and Act shall be credited to Gratuity Fund Accounts maintained with any scheduled Bank as may be decided by the Board of Trustees. The Board of Trustees may open as many accounts as may be required for smooth working of the Scheme. 23. Payment of gratuity benefit. - All payments on account of Gratuity Benefit shall be made by transferring the required fund from the Gratuity Fund Account. A separate Bank account shall be maintained with a Bank. The said account will show the receipt transferred from the Gratuity Fund Account and payment made on account of Gratuity. 24. Investment of money belonging to the gratuity fund. - All moneys belonging to Gratuity Fund shall be invested as per Rule 101 of Income tax, 1961, as modified, and as per direction of Central/State Governments from time to time. 25. Interest. - All interests on investment rent and other income realised including any profit or loss shall be credited to the interest account. Cost of administration shall be transferred from that account to Administration Account. 26. Disposal of the gratuity fund. - Subject to the provisions of the Act and of the Scheme, the Gratuity Fund and the Gratuity Fund Administration Account, shall not, except with the previous sanction of the Board of Trustees, be spent for any purpose other than the payment of Gratuity and meeting cost of Administration in accordance with the provisions of the Scheme. 27. Operation of account. - The Gratuity Fund shall be operated upon jointly by the Controlling Authority and the Gratuity Commissioner or any other officer duty authorised by the Board of Trustees in this behalf. 28. Transfer of account. - If an employee is transferred from one tea Plantation/tea factory to another, his account shall be transferred from the transferring plantation tea factory to the receiving one through Form G-F-5. of the Scheme. 29. Transfer of fund. - If any employer has already created a fund and investing money as per rule 67 (2) of Income-Tax Rule, 1962 it shall be required to be transferred to the Gratuity fund if no exemption under para 34 is granted. If any amount transferred is found short as per provision of the Scheme, the employer shall be responsible to transfer the balance amount at such time as may be directed by the Controlling Authority. 30. If any employer takes out Policy from the Life Insurance Corporation of India under the provision of the Payment of Gratuity Act, 1972 (Central Act 39 of 1972) he shall be liable to transfer the policy in the name of the Controlling Authority and if the amount provided under the Policy is found not adequate as per provision of the Scheme, the employer shall be responsible to transfer or deposit the balance amount in such manner and time as may be directed by the Controlling Authority, if no exemption is granted under para 34 of this Scheme. 31. Exemption. - Employer who has already created a recognised Gratuity Fund under Ruler 101 of Income-Tax Rules, 1962 or obtained a Policy from Life Insurance Corporation India as per provision of the payment of Gratuity Act, 1972 (Central Act 39 of 1972) may be exempted from the purview of this Gratuity Scheme subject to the following conditions :-
(i) Actuarial report indicating the full coverage of the liability under this Scheme by the fund already created or by the Policy from Life Insurance Corporation of India obtained to the satisfaction of the Controlling Authority :Provided that at an interval of 3 years period the Controlling Authority may direct such employer to furnish actuarial report covering full liabilities under the Gratuity Fund created by the employer or Policy obtained from Life Insurance Corporation of India upto the satisfaction of Controlling Authority : Provided further that Controlling Authority may employ actuary to report whether full liabilities under this Scheme, are covered by the Fund created by the Employer, or by the Policy obtained from the Life Insurance Corporation or India and in such case the cost thereof shall be borne by the Employer.
(ii) In the event of failure on the part of the Employer to satisfy the Controlling Authority regarding full coverage of the liabilities by the Gratuity Fund created by the Employer or by the Policy obtained from Life Insurance Corporation of India/by the employer, the exemption allowed shall be revoked and the employer shall be liable to transfer the fund already created by him or the Policy taken out from the Life Insurance Corporation of India shall be assigned in favour of Controlling Authority within the time prescribed by the Controlling Authority.Any shortfall on autuarial calculation, the employer shall be liable to pay the balance amount within such time and with such rate of interest as may be determined by the Controlling Authority.
(iii) No exemption shall be granted to any employer who subsequently propose to create Income Tax approved Fund or to obtain policy from Life Insurance Corporation of India.32. Procedure of submission of application for exemption. - Those who have already created an income Tax approved Fund and are investing money as per Rule 67 (2) of Income Tax Rules, 1962 of those who have obtained Policy from Life Insurance Corporation of India may apply for exemption with the following documents within one month of date of inception of the Scheme:
(i) Actuarial valuation Certificate for the last 3 (three) accounting years.
(ii) Audited accounts for the last 3 (three) accounting years.
(iii) Certificate from the Actuary certifying that.-
(a) Entire Past Service Contribution has been fully funded.
(b) Annual Contribution certified by the Actuary has been regularly paid.
(c) For those have obtained a Policy with Life Insurance Corporation of India a certificate from the Manager of the Division/Branch of Life Insurance Corporation of India will be needed within one month of date of inception of the Scheme confirming.
(d) Entire Past Service liability has been fully funded.
(e) Annual Contributions have been paid regularly.33. The Controlling Authority, if he thinks so fit, may ask for any other information, for the purpose of granting exemption. 34. Mode of recovery of the dues under the gratuity scheme from the employer. - Any amount due from the employer in relation to tea plantation or Tea factory to which this scheme applies payable to the Gratuity Fund and any other dues mentioned herein above including damages as levied under para 24 (b) shall be recovered in the same manner as an arrear of Land Revenue. 35. Authority to issue demand certificate. - Controlling Authority is authorised to issue demand certificate and forward the same to the Collector of the area where the defaulting tea plantation or tea factory is situated. 36. Controlling Authority is authorised to levy damage under Section 20 of the Act. 37. Power to borrow fund. - The Board of Trustees shall have the power to borrow Fund to meet the initial expenses for implementing the Gratuity scheme. The amount so borrowed shall be repaid with the agreed rate of interest as on as the gratuity fund is built up: Provided that such borrowing shall not exceed one crore rupees. 38. Audit. - The affair of the fund shall be audited by Statutory Auditor to be appointed by the Board of Trustees with the approval of the Government. 39. Every exempted employer shall provide the Gratuity Commissioner or any other officers authorised by him the audited Balance Sheet along with Annual Report within 30th September, every year. 40. Annual report on the working of the scheme. - The annual report of the working of the Fund shall be submitted to the Government along with the audited balance sheet.
Form No. G.F.1
Statement Showing the Position of Gratuity Contribution of the Assam Gratuity Fund Scheme, 1993, (Para 10 (2) of the Scheme)1. Name of Estate............... Code No....... 2. For the month of 20.
A. Nos. of Members:-
(i) Balance as on last Statement.........
(ii) Additions (a) By Transfer.........
(b) By new Members............
(iii) Cessations (a) By Transfer.........
(b) By settlement............
(iv) Net Balance carried forward........
(i) Total amount of wage period during the month Rs............
(ii) Total amount of Gratuity contribution payable for the month @...........%......Rs......of the wages.
C. Account Reconciliation:-Add- (I) Net Gratuity contribution (Col. B (ii))...
(ii) Balance Brought forward from Previous Statement....
(iii) Net credit balance of incoming Transfers.Deduct- (iv) Net credit Balance of outgoing Transfers........
(v) Settlement as per Form No. G.F. 3......
Closing Balance Carried Forward...........................Deposit Column Deposited into Bank on..Rs (net Gratuity contribution Rs.........plus Bank Charge Rs......................) by Cash/Cheque/Draft No.........Dated on Bank.
ManagerFor use in the office of the Board or Trustees Verified
PostedSignature of Assistant
Signature of Assistant
Form No. G.F. 2
Assam Gratuity Fund Scheme 1993
Nomination Form (As Per Para 12 (1) Of The SchemeP.F. Serial Number....................Name of Member......................... Member's Caste or Surname................Date of joining Fund......... Father's Name......Date of Birth.... Husband's Name. Sex.............(in case of Married women) Gurdian's Name...................................Marital Status......................(in case of Minor) (Bachelor, Married, etc.) Permanent Address:- Village...............................Thana........................... Post Office.........................District.......................... State................................. Code No...............................Name of Estate...... I hereby direct that the amount at my/of the above minor member's credit in the Assam Gratuity Fund Scheme, 1993 at the time of my/of the above minor member's death shall be paid to the following person(s) in the manner shown against their names:-
Name of Nominee
Relationship with the member
Share of each Nominee
Status of Signatory........
(whether as "member" of as legal of
natural guardian of "minor member").
Signature of witness....................(Member of Primary Committee)
Form No. G.F. 3
(Para 13 of the Scheme)
The Gratuity Commissioner
Assam Gratuity Fund Scheme, 1993Through the Manager ....T.E. P.O................Dist.......... Sub:-Application for payment of Gratuity Sir, I beg to apply for payment of gratuity to which I am entitled under Section 9 of the Assam Gratuity Act, 1993 on account of my superannuation/ retirement/resignation after completion of not less than five years of continuous service/total disablement due to accident/total disablement due to disease with effect from the.......... necessary particulars to my appointment in the establishment are given in the statement below:
1. Name of full...........
2. Address in full .........
3. Tea Garden where last employed..........
4. Post held with P.F. Serial No., if any......
5. Date of appointment.................
6. Date and cause of termination of service........
7. Total period of Service......
8. Amount of wages last drawn..........
9. Amount of gratuity claimed..............2. I was rendered totally disabled as a result of.............(here give the details of the nature of disease or accident). The evidences/witnesses in support of my total disablement are as follows:- The evidence/witnesses in support of my total disablement are as follows:-
(here give details).Place........... Date............
Signature/Thumb impression of
the applicant employee.
Signature of the Estate Manager
Form No. G.F.4
Assam Gratuity Fund Scheme, 1993
Notice of Opening/Annual Position (As Per Para 15 of the Scheme)
1. Name and address of the Establishment.........
2. Name and designation of the Employer........
3. Number of persons employed............
4. Maximum number of persons employed on any day during the preceding twelve months with date..........
5. Number of employees covered by the Act..........
6. Total amount of wage paid during the preceding twelve months.................
Signature of Garden ManagerN.B.-This form shall be submitted at the commencement of the scheme and within the month of April every year.
For Use In Board's Office
Form No. G.F. 5
Assam Gratuity Fund Scheme, 1993
Transfer Form (As Per Para 28 of the Scheme)Transfer Slip No.................. From Code No..............Estate 'A' (Transferring Estate) To Code No Estate 'B' (Receiving Estate) Name of Member Transferred............... Date of Joining the Fund.......... A. Particulars from Transferring Estate. P.F. Serial No. of Members B. Wages of the member as on the date of transfer: C. Wages during preceding twelve months: Certified that the above is a correct record of the said member
Dated.........D. Particulars from Receiving Estate. P.F. Serial No. allotted to member.......... Certified that as from........as account in the name of the said member has been opened with this estate on the basis of the above record from the transferring estate.
(For use in the Office of the Board of Trustees)