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rajnish_sapra (n/a)     31 January 2008

Labour Welfare Fund

Dear Seniors.

we are running a consultancy & comes under shops & establishment act.

our Location is in delhi.

we have around 900 employess all over the state

my quesry is whehter it is apllicable to deduct welfare fund of employee & if deducted then how much it should be for both (employee/employer)

 

regards

 

rajnish


Learning

 2 Replies

Prakash Yedhula (Lawyer)     31 January 2008

II. Constitution of the Labour Welfare Fund for the N.C.T. of Delhi.
 
[align=center]LABOUR DEPARTMENT[/align]  
[sup]1[/sup]No. F.9 (1)/89/DLC (W)/100, dt. 13.7.2004. - In exercise of the powers conferred by sub-section (1) of section 3 of the Bombay Labour Welfare Fund Act, 1953 as extended to the National Capital Territory of Delhi, the Lieutenant Governor of the National Capital Territory of Delhi, is pleased to constitute the Labour Welfare Fund for the National Capital Territory of, Delhi with immediate effect.
 
2. The Fund shall consist of-
(a)   all fines realized from the employees;

(b) unpaid accumulations transferred to the Fund under section 6A of the Act;
(c)  any penal interest paid under section 6B of the Act;
(d)  any contribution paid under section 6BB of the Act;
(e)  any voluntary donations;
(f)     any fund transferred under sub-section (5) of section 7;
(g)  any sum borrowed under section 8;
(h)  any loan, grant-in-aid or subsidy paid by the Government.

3. The sums specified in sub-section (2) of section 3 of the Act shall be paid, or collected by such agencies, at such intervals and in such manner and the accounts of the Fund shall be maintained and audited in such manner as prescribed in the Delhi Labour Welfare Fund Rules, 1997.


4. As per Section 6BB of the Act, the components of the Labour Welfare Fund shall be contributions provided therein which are as follows: -
 
(a)    Rs. 0.75 paise every six months per employee as stands on the register of establishment as on 30[sup]th[/sup] June and 31st December every year respectively, as share of employee;
 
(b)    Rs. 2.25 every six months per employee, as share of employer before the 15th day of July and 15th day of January every year; and
 
(c)    Rs. 1.50 every six months per employee, as share of Govt. of Delhi as matching contribution, an amount equal to twice the employee's contribution. It will-be paid only on receipt of the statement in the prescribed format from the Welfare Commissioner of the Delhi Labour Welfare Board showing the total amount of employee's contribution and employer's contribution in respect of employees of each establishment.
 
5. The provisions of the Act shall be restricted to establishments employing five or more persons, as per section 2(4) of the Act.

6. All the employees except those working in the managerial or supervisory capacity and drawing wages exceeding Rs.2, 500/- (Rs. Two Thousand Five hundred) only per month or / and those who exercise either by the nature of the duties attached to the office or by reasons of the powers vested in them, functions mainly of a managerial nature are liable for contribution to the Labour Welfare Fund. The employee's/employer's share shall be paid directly by the employer to the Labour Welfare Fund, the share of Govt. of NCT of Delhi shall be released subsequently after getting the details of the contribution collected as aforesaid. The default in payment by the employers is recoverable as arrears of land revenue.
 
7. Further as provided in section 7 of the said Act and rule 23 of the Rules made thereunder, the Labour Welfare Fund shall be utilized on the following activities:
(a)   Community and social education centres including Reading Rooms and Libraries;
(b)   Community necessities;
(c)   Games & sports;
(d)   Excursions, tours and holiday homes;
(e)   Entertainment and other forms of recreations;
(f)    Home industries and subsidiary occupations unemployed persons;
(g)   Corporate activities of social nature;
(h) Cost of administering the Act (including the salaries, allowances, pension, provident fund and gratuity and any other fringe benefits of the staff) appointed for the purposes of the Act; and
(i)     Such other objects as would in the opinion of the State Government improve the standard of living and ameliorate the social conditions of labour.

8. In accordance with the provisions contained in section 12 at the Act.
(1) the Lieutenant Governor may appoint inspectors to inspect records in connection with sums payable to the Fund. The inspectors appointed under the Delhi Shops and Establishments Act, 1954 in relation to any area, shall be deemed to be also inspectors for the purposes of the Act, in respect of establishments to which the Act applies, and the local limit within which such inspector shall exercise his functions under the Act shall be the area for which he "" is appointed under the said Act;
(2) any inspector may-
(a)   with such assistance, if any, as he thinks fit, enter at any reasonable time any premises for carrying out the purposes of the Act;
(b)   exercise such other powers as may be prescribed under the Delhi Labour Welfare Fund Rules, 1997.

soulofvalbooj (n/a)     18 February 2008

thankq the same sir..

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