Employee welfare trust
deepak yadav
(Querist) 28 February 2012
This query is : Resolved
Hi,
is it possible to establish employees welfare trust in a factory wherein contribution from employees will be deducted on monthly basis for any emergency need of fund by Employees, this trust will be purely managed by employees and there is no contribution from company side.
Raj Kumar Makkad
(Expert) 28 February 2012
There is no legal problem is doing so as desired. You say 'possible' I say it is the required of the time. Law not only permits but encourages such social responsibilities from the body of individuals.
deepak yadav
(Querist) 28 February 2012
thanks for your reply Mr. Makkad.
does it make any difference that employer is not contributing any thing to that trust.and are their any legal compliances mandatorily to be followed by the employer? is it compulsorily registrable?
i would be obliged if you answer this
Sankaranarayanan
(Expert) 28 February 2012
Yes if it is association or welfare trust then it should be registered under trust act in the sub registeror office
Sudhir Kumar, Advocate
(Expert) 29 February 2012
Yes it can be done as a Regd society and there is no problem as long as it does not overstep the jurisdiction of EPFO or ESI
prabhakar singh
(Expert) 29 February 2012
As already stated, it is possible to do so and there are various legal way to do so.
Guest
(Expert) 29 February 2012
Provided the employer does not have any objection for the use of his address as the address of the trust for registration purpose.
deepak yadav
(Querist) 01 March 2012
Dhingra Sir what are the prospective legal implications if employer has an objection/does not have, for the use of his address as the address of the trust for registration purpose
Guest
(Expert) 01 March 2012
Dear Deepak,
Just think in your own turn, would you like that if you allow someone to reside in your property and he starts any business or profession with your address as his business/profession's address without your consent and later on starts some illegal activity also in the name of such business/ profession, would you allow him to do so?
There is no harm, if the employer gives a written permission to establish a trust for the benefit of employees.
Please don't forget, Sec.3 of the Indian Trusts Act, defines a "trust" as an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner.
