Haryana: Punjab Labour Welfare Fund Act, 1965

Background

The Punjab Labour Welfare Fund Act, 1965 was originally enacted to promote the welfare of labour in the state of Punjab. After the bifurcation of Punjab in 1966, this Act was adopted and extended to the state of Haryana, where it continues to be in force with certain modifications.

This legislation aims to provide for the constitution of a Labour Welfare Fund, which is used to support a variety of welfare activities for workers including housing, health, education, recreation, and family assistance.

The Punjab Labour Welfare Fund Rules, 1966 were enacted to give the procedural clarity and enacted in exercise of the powers conferred by section 27 of the Punjab Labour Welfare Fund Act, 1965,

Applicability

These act and rules are applicable to the establishments covered which means a factory and includes any premises including the precincts thereof wherein and in any part of which any industry within the meaning of clause (j) of section 2 of the Industrial Disputes Act, 1947 (Act 14 of 1947), is carried on and also includes a shop or a commercial establishment within the meaning of the Punjab Shops and Commercial Establishments Act, 1958 (Punjab Act 15 of 1958), in which, on any day. Ten or more employees are employed or were employed during the preceding twelve months

Compliance requirement under the Act and Rules

  1. Labour Welfare Fund Registration (The Punjab Labour Welfare Fund Rules, 1966)

Act is applicable to a factory as defined in clause (m) of section 2 of the Factories Act, 1948 or any place which is deemed to be a factory under sub section (2) of section 85 of that Act includes any premises including the predicts thereof wherein and in any part of which any industry within the meaning of clause (j) of section 2 of the Industrial Dispute Act, 1947, is carried on and also includes a shop or a commercial establishment within the meaning of the Punjab Shops and Commercial Establishment Act, 1958, in which, on any day, ten or more employees are employed or were employed during the preceding twelve months.

 

  1. Haryana Labour Welfare Fund Contribution (Section 9A, The Punjab Labour Welfare Fund Rules, 1966)

Employers must pay the employer and employee contribution (deducted from the employee’s salary) to the Fund every month.

The amount of deduction or amount paid towards the Haryana Labour Welfare Fund is as follows:

  • Employee: 0.2% of the salary, wages or remuneration up to a maximum of Rs.31
  • Employer: Twice the amount of employee contribution up to a maximum of Rs.62
  • Maximum total contribution per employee: Rs.93.

The employer shall along with such payments submit a Statement to the Welfare
Commissioner giving full particulars of the amounts so paid.

  1. Returns (Section 9A (2), The Punjab Labour Welfare Fund Rules, 1966)

The employer is required to file monthly returns with the Labour Welfare Board on the last day of every month.

  1. Contribution to Fund by employers in Haryana (Rule 22(1))

Employers must pay monthly contributions to the Fund, and submit a statement showing full details of the amount paid to the Welfare Commissioner.

  1. Form-A: Register of wages by Employer in Haryana (Rule 22(1))

Every employer of an establishments shall maintain and preserve for a period of ten years a register of wages in Form A except in case where the employer maintain muster roll-cum Wages register under the Payment of Wages Act, 1936 and the rules made then under

  1. Form-B: Consolidated register of unclaimed wages and fines maintained by employer in Haryana (Rule 22(2))

Every employer shall maintain Form-B, a consolidated register of unclaimed wages and fines realized from employees, to be kept updated for submission to the Welfare Commissioner.

  1. Furnishing of a copy of the extract from the register in Form B (Rule 3(3)(4))

Every employer shall, by 31st January each year, submit to the Welfare Commissioner a copy of the extract from Form-B pertaining to the previous year.

  1. Payment of fines and unpaid accumulations in Haryana (Section 3(3), Rule 4)

All fines realised from the employees and unpaid accumulations during the quarters, ending the 31st March, the 30th June, the  30th September and the 31st December shall be paid by the employer to the Board by the 1st May, the 1st August, the 1st November and the 1st February, succeeding such quarter and a statement giving particulars of the amounts so paid shall be submitted by him along with such payment to the Welfare Commissioner

  1. Compliance to Notice for Payment of fines and unpaid accumulations recd. from Welfare Commissioner (Section 3(3), Rule 4)

Employer is required to comply with the Notice issued by Welfare Commissioner for payment of any portion of fines realised from the employees or unpaid accumulations held by him and the same remains unpaid in accordance with rule 4,within fourteen days of the receipt of such Notice

Penalties & Punishments

  • Under Section 26A:

Contravention of provisions of Act/Rule will also attract penalty in:
For the first offence, with fine which may extend to five thousand rupees ; but not less then two thousand rupees and for a second or subsequent offences, with imprisonment for a term which may extend to three months, or with fine which may extend to ten thousand rupees but not less than three thousand rupees.

  • Any employer who fails to pay the contribution amount within a period of one month from the date specified under sub-section (2), shall be liable to pay interest at the rate of twelve percent per annum from the said date until such time the amount is actually deposited with the Welfare Commissioner

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