In a relief to thousands of tea garden workers in Assam, the Gauhati High Court has stayed the state’s government’s order invoking Clause 22(C) of the Assam Tea Plantations Provident Fund Act, 1955, which seeks to remove the dearness allowance (DA) component from their wages.

The court’s decision came in response to a petition filed by a workers’ union challenging the state government’s move. The petitioner argued that the new provision contradicts key sections of the Act and violates workers’ rights.

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The Assam government had introduced an amendment via a notification on November 12, 2024, which effectively excluded DA from the calculation of wages for provident fund contributions. The move sparked widespread protests in Guwahati and other parts of the state with labour unions condemning it as an attack on the financial security of over 12,000 tea plantation workers.

The petitioner, a tea workers’ union, filed a writ petition on February 21, challenging the validity of the newly-added provision to Clause 22(C) of the Assam Tea Plantations Provident Fund and Pension Fund and Deposit Linked Insurance Fund Scheme, 1968.

During the hearing, Additional Senior Government Advocate R K Borah, appearing for the Assam government, requested time to submit a response clarifying the state’s position. The court granted the request but stayed the removal of the DA until further orders.

The controversy over the removal of the DA reignited tensions between tea garden workers and the Assam government. The Assam Tea Workers’ Association (ATWA) called the court’s stay a “strong response to government injustice”, accusing the administration of attempting to dilute workers’ benefits amid rising inflation and economic hardship.

Tea plantation workers form the backbone of Assam’s tea industry, which produces over 50% of India’s tea exports. However, they have historically faced issues like low wages, poor living conditions, and lack of access to social security. The latest government move to exclude the DA from their wage structure is seen as an additional burden on a workforce already struggling with financial instability.

The Assam government justified the amendment as part of economic reforms to streamline labour laws and reduce financial burdens on tea estate owners. However, the unions argue that such changes disproportionately impact low-income workers.