Background
The Andhra Pradesh Labour Welfare Fund Act, 1987 was enacted to provide for the constitution of a Labour Welfare Fund and to promote the welfare of labour in the state of Andhra Pradesh. It aims to ensure that a portion of contributions from employers and employees is directed toward improving the standard of living, health, safety, and general welfare of workers in various sectors. This is part of a broader policy objective followed by many Indian states through their respective Labour Welfare Fund Acts. The Act is administered by the Andhra Pradesh Labour Welfare Board, which is responsible for implementing welfare schemes using the collected funds.
The Andhra Pradesh Labour Welfare Fund Rules, 1988 were notified by the Andhra Pradesh Government to carry out the provisions of the Andhra Pradesh Labour Welfare Fund Act, 1987. These rules give procedural clarity on Collection and remittance of contributions, Maintenance of registers and records, Audit and inspection procedures, Functions of the Welfare Board, Schemes and benefits under the Fund.
Applicability
This act applies to the establishments covered under the Andhra Pradesh Labour Welfare Fund Act, 1987 which includes factories, motor transport undertaking, any other establishment as defined in Section 2 (10) of the Andhra Pradesh Shops and Establishments Act, 1966 and includes a society registered under any law in force in the State relating to registration of societies, and a chartiable or other trust, whether registered or not, which carries on any business or trade or any work in connection with or ancillary thereto and which employs or on any working day during the preceding twelve months employed twenty or more persons, but does not include an establishment, not being a factory, belonging to or under the control of the Central or any State Government [Section 2(4)]
Compliance requirements under the Rules in accordance with the Act
The Andhra Pradesh Labour Welfare Fund Act applies to the following establishments in Andhra Pradesh:
Every employee shall contribute thirty rupees per year to the Fund and every employer shall, in respect of each such employee, contribute seventy rupees per year to the Fund. Every employer of an establishment operating for any length of period during the twelve months preceding the 31st December, of every year shall pay to the Welfare Commissioner or such officer as may be authorised in this behalf, the employer’s contribution and also the employees’ contribution, whose names stand on the register of establishment preceding the 31st December, by the 31st January succeeding year, along with a statement showing full particulars in Form-F.
Penalties & Punishments
As per Section 30: Penalty for noncompliance with the direction of the Board:- Any person who wilfully fails to produce any document required by the Board or to furnish any information called for by the Board or to furnish any information called for by the Board or wilfully fails to comply with any direction issued by the Board under Section 29 shall, on conviction, be punished with
(a) for the first offence, with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees or with both;
and
(b) for a second or subsequent offence, with imprisonment for a term which may extend to three months, or with fine which may extend to five hundred rupees or with both ; and
Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the judgment of the court, in any case where the offender is sentenced to fine only, the amount of fine shall not be less than fifty rupees.
Conclusion
The Andhra Pradesh Labour Welfare Fund Act, 1987 is a progressive social legislation aimed at uplifting the standard of living and working conditions of the labor force in the state. By mandating joint contributions from employers, employees, and the government, it institutionalizes worker welfare as a shared responsibility.
For employers, compliance with the Act is mandatory, and failure to contribute or maintain records can attract penalties. For workers, it offers a safety net and support beyond the scope of traditional employment benefits.
The Act reflects the government’s commitment to labor welfare and plays a key role in fostering a more secure and productive workforce in Andhra Pradesh.
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