Key Compliances under Chandigarh: Punjab Labour Welfare Fund Act, 1965

Background

The Punjab Labour Welfare Fund Act, 1965 aims to promote the welfare of employees by creating a statutory fund for providing social, economic, and recreational benefits. It mandates contributions from employers and employees, along with deposits of fines and unpaid accumulations. The Punjab Labour Welfare Fund Rules, 1966 prescribe procedures for registration, record maintenance, and timely payments. The Fund is administered by the Labour Welfare Board to ensure proper utilization for worker welfare.

Applicability

All establishments or employers employing 10 or more persons in past 12 months in Chandigarh

Compliance Requirements under the Act in Accordance with the Rules

  1. Labour Welfare Fund Registration

Labour Welfare Fund Registration under Labour Welfare Fund Act as applicable on the Employer in the State of Operations.

Establishment 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;”

  1. Payment of fines and unpaid accumulations in Chandigarh (Section 9, 3(3), 27(2)(a) | Rule 3)

All fines realized from the employees and unpaid accumulations for each quarter (ending Mar 31, Jun 30, Sep 30, Dec 31) must be paid by the employer to the Labour Welfare Board by May 1, Aug 1, Nov 1, and Feb 1 respectively, along with a statement giving particulars of the amounts so paid submitted to the Welfare Commissioner.

  1. Contribution to Fund by employers in Chandigarh (Section 9A)

Every employer shall pay to the Fund both his contribution and the contribution of the employee before the 31st December of every year through online mode in favour of Welfare Commissioner.

  1. Form A: Register Of Wages in Chandigarh (Section 27(2)(j) | Rule 22(1)(a))

Every employer of an establishment shall maintain a register of wages in Form A.

Provided that if the information to be maintained in Form A is being maintained by the employer in any other register under any other law for the time being in force, he may not maintain such information in Form A

  1. Form B: Register of Fines Realised and Unpaid Accumulation for the year in Chandigarh (Section 27(2)(j) | Rule 22(1)(b))

Every employer of an establishment shall maintain a consolidated register of unclaimed wages and fines in Form B.

Provided that if the information to be maintained in Form B is being maintained by the employer in any other register under any other law for the time being in force, he may not maintain such information in Form B

  1. Furnishing of copy of the extract from the register in Form B to Welfare Commissioner in Chandigarh (Rule 22(2))

Every employer must forward to the Welfare Commissioner, by 31st January each year, a copy of the extract from the Form B register pertaining to the previous year

  1. Compliance to Notice for Payment of fines and unpaid accumulations recd. from Welfare Commissioner (Sections 3(3)and 27(1) | Rule 4)

Every employer must comply with a notice issued by the Welfare Commissioner to pay any outstanding fines or unpaid accumulations not deposited under Rule 3, within 14 days of receipt.

  1. Chandigarh Labour Welfare Fund Contribution (Section 9A)

Each employee shall contribute to Fund every month an amount equal to 0.2% of his salary or wages or any remuneration subject to a limit of rupees twenty-five and each employer in respect of each such employee shall contribute to the Fund every month, twice the amount contributed by such employee

Provided that the limit specified above shall be indexed annually to the consumer price index beginning from first of January each year.

Explanation- For the purposes of sub-section (1), ―employee means an employee on the register of an establishment on the last working day of the month.

Penalty & Punishment

U/s 3(4): The employer shall be required to pay interest at the rate of twelve per cent per annum on the amount of unpaid accumulations incase he fails to deposit the same within a period of one year from the prescribed date. The rate of interest thereafter shall be twenty percent per anrium

U/s 26A: Contravention of provisions of Act/Rule will also attract penalty in:

(i) for the first offence, with fine which may extend to five thousand rupees; but not less then two thousand rupees

(ii) 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.

 

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