Background
The Madhya Pradesh Shram Kalyan Adhiniyam,1982 was enacted to provide for the constitution of a Labour Welfare Fund aimed at promoting the welfare of labour in establishments across the State of Madhya Pradesh. The Madhya Pradesh Labour Welfare Fund Rules prescribe the procedure for contributions, filings, record maintenance, and reporting, ensuring implementation and compliance under the Act.
Applicability
These Act and Rules apply to every factory or any establishment carrying on any business, trade, or work in connection with or incidental thereto in the State of Madhya Pradesh.
Compliance requirements under the Act in Accordance with the Rules
Labour Welfare Fund Registration under Labour Welfare Fund Act as applicable on the Employer in the State of Operations.
Every employer shall pay to the board all fines realised from the employees and all unpaid accumulations during the quarter ending 31st March, 30th June, 30th September and 31st December within fifteen days from the close of each quarter.
Every employer shall pay to the Board both the employer’s and employee’s contributions twice a year, before 15th July and 15th January. Along with the payment, the employer shall submit a statement of contributions in the prescribed form for employees listed in the establishment’s register on 30th June and 31st December, respectively, as required U/s9(3). Contribution payable if the employee name stands on the register of an establishment on thirty working days in a calendar year.
Every employer shall send a report to the Welfare Commissioner on the welfare activities conducted by him during the financial year, in such form and in such manner as may be provided in the regulations made under section 33-A.
Every employer of an establishment shall maintain and preserve for period of 10 years a consolidated register of unclaimed wages and fines in Form ‘E’
1) Where cases are pending before the Appellate Authority, the register shall be preserved till the cases are finally disposed.
2) The Government may also allow the registers and records to be maintained in computerised or digital formats.
Penalty & Punishment
Section 10: Interest on unpaid accumulations or fine on the notice of demand
If an employer fails to deposit unpaid accumulations, fines, or required contributions within the prescribed time, the Welfare Commissioner will issue a notice requiring payment within at least 30 days.
If the employer still does not pay without sufficient cause, they must pay the due amount along with simple interest:
Section 31(2): Penalty for obstructing inspector in discharge of inspector’s duties or for failure to produce documents etc.
If an employer fails to pay the contribution or any sum which he is liable to pay under this Act, he shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to twenty thousand rupees or with both.
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