The Code on Social Security (Andhra Pradesh) Rules, 2026
Rule 20. Terms and conditions for management of the trust
Official text
(1) A Board of Trustees shall be established for the management of the approved Gratuity Fund according to such directions as may be given by the State Government or the Commissioner of Labour, as the case may be, from time to time.
(2) The Board of Trustees shall consist of such equal number of representatives each of the employers and employees as may be specified in the approved Gratuity Fund, as the case may be.
(3) The employer of such exempted establishment shall be the Chairperson of the Board of Trustees and the Chairperson may exercise a casting vote in the event of equality of votes. However, arm’s length principles shall be maintained by the Chairperson in all meetings of the Board of Trustees.
(4) The Board of Trustees shall meet at least once in every three months and shall function in the accordance with the guidelines that may be issued from time to time by the State Government or the Commissioner of Labour, or any officer authorised by him as the case may be.
(5) The terms and conditions, including the tenure of office of the Trustees, the procedure and manner for election or nomination of the representatives of the employees and of employers to the Board of Trustees, disqualification and cessation of trusteeship, re-election or renomination of trustees, the quorum at the meeting of the Board, records to be kept of the transaction of business and all such other matters and conditions for the management of the Trust shall be as provided for in the approved Gratuity Fund, as the case may be.
(6) In case of any dispute or doubt on
a. the interpretation of any provision of this rule, such matter shall be referred to the Government; and b. any clarifications on the grant of such exemption which do not relate to this rule, shall be referred to the State Government or the Commissioner of Labour, or any officer authorised by him as the case may be;
and the interpretation of the State Government or the Commissioner of Labour, or any officer authorized by him as the case may be., as the case may be, on such dispute or doubt shall be binding for the disposal of such matter so referred.
Explanation:-“Approved Gratuity Fund” shall be as per the provisions of Section 57(2) of the Code