THE KERALA CASHEW
WORKERS RELIEF AND WELFARE FUND ACT, 1979
(Act 19 of 1984)
An Act to provide for the constitution of a fund to
grant relief to and to promote the welfare of, employees in cashew factories
the State of Kerala.
is expedient to provide for constitution of a fund to grant relief to, and to
promote the welfare of, employees in cashew factories in the State of Kerala;
BE it enacted in the
Thirtieth Year of the Republic of India as follows:-
Short title, extent, commencement and application.-(1) This Act
may be called the Kerala Cashew Workers Relief and Welfare Fund Act, 1979.
extends to the whole of the State of Kerala.
shall come into force on such date as the Government may, by notification in
the gazette, appoint.
shall apply to all cashew factories registered and licensed in the State of
Kerala Under the Factories Act, 1948 (Central Act 63 of 1948).
Definitions.-In this Act, unless, the context otherwise
“Board” means the Kerala Cashew Workers Relief and Welfare fund Board
constituted under section 7;
“contribution” means the contribution payable by the employer or
the Government] under the scheme;
“cashew factory” means a factory wherein processing of cashewnuts is
being carried on and which is registered and license under the Factories Act,
1948 (Central Act 63 of 1948);
“employer” means any person who employs, whether directly or through
another person or whether on behalf of himself or any other person, one or more
employee or employees and includes any person who has a licence for the
construction of extension of a cashew factory under the Factories Act, 1948
(Central Act 63 of 1948) and the rules made thereunder;
“employee” means any person who is employed in any cashew factory for
wages for processing cashewnuts and who gets his wages directly or indirectly
from the employer and includes-
any person employed by or through a contractor or through an agent in or
in connection with the processing of cashewnuts; and
and other staff employed in connection with the
processing of cashewnuts;
“Fund” means the Kerala Cashew Workers Relief and Welfare Fund
established under the scheme;
“member” means any employee who contributes to the Fund;
“processing”, with reference to cashewnuts, means loading, unloading,
transporting, stacking, unstacking, soaking, roasting, shelling, frying,
peeling, grading, filling, packing or otherwise treating or adapting
cashewnuts, with a view to their use, delivery, sale or other disposal, and
includes work connected with the maintenance of processed cashewnuts;
“scheme” means the scheme framed under this Act;
“State” means the State of Kerala;
“wages” means all remuneration paid or payable to an employee for work
done or services rendered by him and includes leave and holiday wages paid or
payable to him under any law or agreement for the time being in force, but does
not include overtime allowance, bonus and commission.
3. Kerala Cashew Workers
Relief and Welfare Fund.- (1) The Government may, by notification in the
Gazette, frame a scheme to be called the Kerala Cashew Workers Relief and
Welfare Fund Scheme for the establishment of a Fund under this Act and there
shall be established, as soon as may be after the framing of the scheme, a Fund
to be called the Kerala Cashew Workers Relief and Welfare Fund, in accordance
with the provisions of this Act and the scheme.
(2) There shall be
credited to the Fund-
contributions to be paid by the Government, employers and
or advances made by the Central Government or the Government of Kerala or any
local authority, and
other amount which, under the provisions of the scheme, shall be credited to
(3) The Fund
shall vest in, and be administered by, the Board.
(4) Subject to
the provision of this Act, the scheme may provide for all or any of the
matters specified in the Schedule.
(5) The scheme
shall be laid, as soon as may be, after it is framed, 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 modification in the scheme, the
scheme shall thereafter have effect only in such modified form; so however
that any such modification shall be without prejudice to the validity of any
thing previously done under the scheme.
4. Purposes for which Fund may
be expended .- Subject to the provisions of this Act and the scheme, the
Fund shall be expended for the following purposes, namely:-
of relief wages to employees in cashew factories when there is no work in
those factories and
payment of pension,-
to an employee who is unable to work due to old age or infirmity or who
has completed the age of sixty years; and
to an employee of a cashew factory retired before or after the commencement of
this Act on attaining the age of superannuation as per the rules of the
concerned cashew factory and is out of employment ; and”]
(ii) to a person
who, before the commencement of this Act was an employee and completed the age
of sixty years or who suffers from permanent disablement and is out of
(aaa) payment of
family pension to the spouse of a deceased employee;
assistance to an employee who suffers from permanent or temporary disablement;
(iii) loans or
grants to an employee to meet expenses for the marriage of children or for
expenses in connection with the death of dependent or for expenses for
construction or maintenance of house;
benefits to women employees and members of their families who are not eligible
for such benefits under any other law for the time being in force;
facilities to those employees and members of their families who are not
eligible for such benefits under any other law for the time being in force;
for education to the employees and members of their families; and
Explanation.- For the
purpose of the above clause (aaa) family means and includes the following
relatives of the employee, namely:-
wife in case of male employee;
husband in case of female employee;
father and mother who are solely dependent upon the employee.]
of such other amount as may be specified in the scheme.
5. Contribution and matters
which may be provided for in the scheme..- (1) The contribution which
shall be paid by an employer to the Fund shall be at the rate of
[one rupee for each employee for each day of work done by him in the cashew
(2) The contribution
which shall be paid by an employee shall be at the rate of [one
rupee] for every day of work done by him in the cashew factory.
The amount of contribution due for the period prior to the date of publication
of the Kerala Cashew Workers Relief and Welfare Fund (Amendment) Act, 1990
shall be deemed to be in arrears and shall be paid to the Fund in such instalments
and in such manners as may be specified by the Government”]
(3) The employees’
contribution shall be deducted by employer from the wages payable and remitted
to the Fund along with the employer’s share before the date specified in
The Government shall contribute to the Fund every year by way of grant an
amount equal to the amount of contribution paid by employees under sub-section
(4) Where the amount
of contribution payable under this Act involves a fraction of a rupee, the
scheme may provide for rounding off the fraction to the nearest rupee,
half-a-rupee or quarter of a rupee.
6. Modification of scheme.-
(1) The Government may, by notification in the Gazette, add to, amend or vary
the scheme either prospectively or retrospectively.
notification under sub-section (1) 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
modification in the notification or decides that the notification should not be
issued, the notification shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so however that any such
modification or annulment shall be without prejudice to the validity of
anything previously done under that notification.
7. Constitution of Board.-
(1) The Government may, by notification in the Gazette, constitute, with effect
from such date as may be specified therein, a Board to be called the Kerala
Cashew Workers Relief and Welfare Fund Board for the administration of the Fund
and to supervise or carry out the activities financed from the Fund.
(2) The Board shall
be a body corporate by the name aforesaid having perpetual succession and a
common seal and shall by the said name sue and be sued.
(3) The Board shall
consist of such number of Directors as may be appointed by the Government and
they shall be chosen in such manner as may be provided for in the scheme:
Provided that the
Board shall include an equal number of Directors representing the Government
the employers and the employees.
(4) One of the
Directors of the Board shall be appointed by the Government as its Chairman.
(5) The Chairman
shall exercise such powers and perform such functions as may be specified in
(7) The Government
shall publish in the Gazette the names of the chairman, [*****************]
and the other Directors of the Board.
(8) The Board shall
administer the Fund vested in it in such manner as may be specified in the
8. Appointment of Officers.-(1)
The Government may appoint a Chief Executive Officer and as many Inspectors as
they consider necessary to assist the Chief Executive Officer in the exercise
of his powers and the discharge of his duties.
(2) The Board may,
with the previous approval of the Government, appoint such officers and other
employees as it may consider necessary for assisting it in the administration
of the Fund.
(3) The method of
recruitment, salary and allowances, discipline and other conditions of service
of the Chief Executive Officer and the Inspectors shall be such as may be
specified by the Government, and the method of recruitment, salary and
allowances, discipline and other conditions of service of the officers and
other employees appointed by the Board shall be such as may be specified by the
Board with the previous approval of the Government.
(4) In making
appointments to the posts of officers and other employees to be appointed by
the Board, the provisions of the clauses (a), (b) and (c) of rule 14 and the
provisions of rules 15, 16 and 17 of the Kerala State and Subordinate Services
Rules, 1958, as amended from time to time, shall, mutatis mutandis, be
9. Duty of employer to file
return.- Every employer shall, before the 10th of every month,
file a return showing the details of contributions paid into the fund, in such
manner as may be specified in the scheme.
10. Determination of amounts
due from employers.- (1) The Chief Executive Officer or any Inspector
authorised by him in this behalf may, by order, determine the amounts due from
any employer under the provisions of this Act or of the scheme and for this
purpose may conduct such enquiry as he may deem necessary.
(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 under the Code of
Civil Procedure, 1908, (Central Act 5 of 1908), when trying a suit, in respect
of the following matters, namely:-
the attendance of any person and examining him on oath;
the discovery and production of documents;
evidence on affidavit;
commissions 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,and for
the purposes of section 196, of the Indian Penal Code, 1860 (Central Act 45 of
(4) No order determining the amount due from
any employer shall be made under sub-section (1) unless the employer has been
given a reasonable opportunity of being heard.
(5) Any person
aggrieved by an order under sub-section (1) may prefer an appeal to the
Government or such other authority as may be specified by the Government in
this behalf, within sixty days from the date of the receipt of the order, and
the decision of the Government or such other authority on such appeal shall be
11. Provisional assessment
where return is not filed.- If any employer fails to submit the return as
required by section 9, the Chief Executive Officer or the Inspector authorised
by him in this behalf may provisionally determine the amount due from that
employer to the Fund:
Provided that no
provisional assessment shall be made final till the party is given an
opportunity of being heard.
12. Mode of recovery of money
due from employers.- Any amount due from an employer in pursuance of the
provisions of this Act or the scheme may, if the amount is in arrears, be
recovered in the same manner as an arrear of land revenue
Whoever, for the purpose of avoiding any payment to be made by himself 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 six months, or with fine which may extend to one thousand rupees, or
contravenes or makes default in complying with any of the provisions of this
Act or of the scheme shall, if no other penalty is elsewhere provided by or
under this Act for such contravention or non-compliance, be punishable with
imprisonment for a term which may extend to six months, or with fine which may
extend to one thousand rupees, or with both.
14. Enhanced punishment for
default in payment of employees’ contributions already deducted.-(1)
Whoever makes default in the payment of the employees’ share of the
contribution to the Fund after having deducted it from the wages of the
employees in accordance with the provisions of this Act or the scheme, shall be
punishable with imprisonment for a term which may extend to one year, but which
shall not be less than three months and with fine which may extend to four
(2) Notwithstanding anything
contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), an
offence under sub section (1) shall be cognizable.
15. Enhanced punishment
for second or subsequent offence.- Whoever, having been convicted by a
court of an offence punishable under this Act, commits the same offence again,
shall be punishable for every such subsequent offence with imprisonment for a
term which may extent to one year, but which shall not be less than three
months and with fine which may extend to four thousand rupees.
16. Offences by companies.-Where an offence
under this Act has been committed by a company, every person who, at the time
the offence was committed, was in charge of, and was responsible to, the
company for the conduct of the business of the company, as well as 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 if he proves that the
offence was committed without his knowledge or that he exercised all due
diligence to prevent the commission of such offence.
(2) Notwithstanding anything
contained in sub-section where an offence under this Act has been committed
with the consent or connivance of, or is attributable to any neglect on the
part of, any Director, Manager, Secretary or other officer of the company, such
Director, Manager, Secretary or other officer shall also be deemed to be
guilty of that offence and shall be liable to be proceeded against and punished
purposes of this section,-
means any body corporate and includes a firm or other association of
in relation to a firm, means a partner in the firm.
17. Congnisance of
offences.-No court shall take cognisance 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 Government or such other authority as
may be specified in this behalf by the Government, by the Chief Executive
officer or any Inspector appointed under this Act.
18. Power to order
inquiry.-(1) The Government may, at any time, appoint any person 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 inquiry and
furnish to him such documents, accounts or information in the possession of the
Board as he may require.
19. Power to supersede
the Board.-(1) If, on consideration of the report under section 18 or
otherwise, the Government are of opinion that the Board 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) Upon the publication of
a notification under sub-section (1),-
the Directors of the Board shall, as from the date such publication, vacate
their offices as such Directors;
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;
funds and other properties vested in the Board shall, during the period of
supersession, vest in the Government.
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 in section 7.
20. Power to recover
damages.- Where an employer makes default in the payment of any contribution
due to the Fund under this Act, the Government may recover from the employer
damages not exceeding twenty-five per cent of the amount of arrears as they may
think fit to impose.
21. Bar of benefits under
Industrial Disputes Act, 1947.-Any employee who is paid relief wages under
this Act shall not be entitled to claim the compensation, if any, payable under
Chapter VA of the Industrial Disputes Act, 1947 (Central Act 14 of 1947), for
the days on which such relief wages have been paid.
22. Bar of jurisdiction
of civil courts.-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 require to be settle decided or dealt with or to be determined by the
Government or the Board or the Chief Executive Officer or any Inspector.
23. Directors of the
Board etc., to be public servants.-Every Director of the Board and every
officer or other employee appointed under this Act shall be deemed to be a
public servant within the meaning of section 21 of the Indian Penal Code, 1860
(Central Act 45 of, 1860).
24. Protection of
actions taken in good faith.-No suit, prosecution or other legal
proceedings shall lie against the Government or the Board or any officer or other
person in respect of anything which is in good faith done or intended to be
done under this Act or the scheme.
25. Power to remove
difficulties.-If any difficulty, arises in giving effect to the provisions
of this Act or of the scheme, the Government may, by order, do anything not
inconsistent with such provisions which appears to them to be necessary or
expedient for the purpose of removing the difficulty.
sub-section (4) of section 3]
Matters for which provisions may be made in the Scheme
The time and manner in which contributions shall be made to the Fund by
The payment by the employers of sums of money as may be necessary to
meet the cost of administering the Fund and the rate at which and the manner in
which the payment shall be made.
The constitution of any committee for assisting the Board.
The manner in which accounts shall be kept, the investment of money
belonging to the Fund in accordance with any direction issued or condition
specified by the Government, the preparation of the budget, the audit of
accounts and the submission of reports to the Government.
The conditions under which the Fund may be expended for payment of
relief wages to the workers during, the period of closure of cashew factories.
[“5A. The amount and the conditions
and procedures for the payment of pension, family pension, grant and advances
from the fund.
purposes for which the fund may be utilised for the welfare of employees or
The registers and records to be maintained with respect to employees and
the returns to be furnished by employers.
The form or design of any identify card, token or disc for the purpose
of identifying any employee; and for issue, custody and replacement thereof.
The fee to be levied for any of the purposes specified in this
The further powers, if any, which may be exercised by the Chief
Executive Officer and the Inspectors.
other matter which is to be provided for in the scheme or which may be necessary
or proper for the purpose of implementing the scheme.