Background
The Gujarat Labour Welfare Fund Act, 1953 was enacted to provide for the constitution of a Labour Welfare Fund and to secure financing for welfare measures and facilities for workers in the State of Gujarat. It ensures that fines, unpaid wages, and contributions from employers, employees, and the Government are pooled together to fund welfare activities for the benefit of employees.
Applicability
The Act applies to the following establishments in Gujarat:
Exclusions:
Compliance requirements under the Act in accordance with the Rules
The Gujarat Labour Welfare Fund Act applies to establishments in Gujarat including:
Every employer shall submit to the Welfare Commissioner, on or before 15th July and 15th January each year, a statement of employer’s and employee’s contributions in Form A-I for employees whose names stand on the establishment register as on 30th June and 31st December.
The amount of contribution shall be ₹3 per employee, while the employer’s contribution shall be ₹6 per employee every six months (₹12 annually). This excludes employees employed in managerial or supervisory capacity drawing wages exceeding ₹3,500 per month.
All fines realized from employees and unpaid accumulations during the quarters ending 31st March, 30th June, 30th September, and 31st December must be remitted by the employer to the Welfare Commissioner on or before 15th April, 15th July, 15th October, and 15th January of the succeeding quarter. A statement of amounts paid must also be submitted with the remittance.
Every employer must maintain and preserve, for a period of 10 years, a consolidated register in Form B in respect of unclaimed wages and fines.
Every employer must maintain and preserve, for a period of 10 years, a register in Form C showing particulars of employees in whose respect unpaid accumulations are held
Every employer shall forward to the Welfare Commissioner a copy of the extract from registers maintained in Form B and Form C, pertaining to each quarter, within 15 days of the end of that quarter.
Every employer of an establishment not covered under the Payment of Wages Act, 1936 must maintain:
Every employer of an establishment not covered under the Payment of Wages Act, 1936 must forward to the Welfare Commissioner, by 31st January each year, a copy of the extract from the register in Form B, pertaining to the previous year.
Penalty & Punishment
Any employer who fails to pay any amount of unpaid accumulations or fines realised within the period specified, shall, on conviction, be punishable with imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both.
Any breach of Rules punishable with a fine not exceeding Rs. 2000/- and in case of continuing offence, with a daily fine not exceeding one thousand rupees during the continuance of the offence
Conclusion
The Gujarat Labour Welfare Fund Act, 1953 mandates registration, maintenance of specific registers, timely submission of contributions, and remittance of fines/unpaid wages. It ensures accountability of employers and provides financial resources for labour welfare initiatives. Non-compliance attracts penalties including fines and potential prosecution.
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