Compliance requirements under the Rule in accordance with the Act

1. Labour Welfare Fund Registration

The Karnataka Labour Welfare Fund Act applies to the following establishments in Karnataka:

• • A factory,
  • A motor omnibus service,
  • Any establishment including a society registered under the Karnataka Societies Registration Act, 1960, and a charitable or other trust (registered or not) carrying on any business or trade or related work, employing more than 50 persons on any working day during the preceding 12 months,
  • Any plantation or workshop.

It does not apply to establishments (not being factories) belonging to or under the control of the Central or State Government.

2. Collection and payment of fines & of unpaid accumulations by employers in Karnataka (Section 7, Rule 3(3))

All fines realized from employees and all unpaid accumulations accruing after the commencement of the Act shall be paid by the employer to the Welfare Commissioner once every quarter, on or before 15th April, 15th July, 15th October, and 15th January, in the manner specified in the Rules.

3. Form D: Statement of payment of Labour Welfare Fund contribution in Karnataka (Section 7A(3), Rule 3A)

Every employer shall make payment of the employer’s and employees’ contributions to the Labour Welfare Fund and submit to the Welfare Commissioner a statement in Form D on or before 15th January every year, showing the contributions paid during the preceding year.

4. Compliance to Notice for payment of fines and unpaid accumulations from Welfare Commissioner (Rule 4)

If the Welfare Commissioner issues a notice in Form C directing payment of fines realized from employees or unpaid accumulations that remain unpaid under Rule 3, the employer must comply and make such payment within 14 days of receiving the notice.

5. Contributions to the Labour Welfare Fund in Karnataka (Section 7A, amended 2017)
   For every employee whose name stands in the register of an establishment on 31st December, contributions must be paid to the Fund comprising:

• Employer’s contribution,
• Employee’s contribution, and
• State Government’s contribution.

Currently, the prescribed contributions are ₹20 by the employee, ₹40 by the employer, and ₹20 by the State Government, annually.

6. Form A: Register of Wages by Employer in Karnataka (Rule 29(1)(a))
   Every employer of an establishment to which the Payment of Wages Act, 1936 does not apply shall maintain a Register of Wages in Form A.
7. Form B: Consolidated Register of Unclaimed Wages and Fines in Karnataka (Rule 29(1)(b))
   Every employer of an establishment to which the Payment of Wages Act, 1936 does not apply shall maintain a Consolidated Register of Unclaimed Wages and Fines in Form B.

Furnishing of a copy of the extract from the register in Form B (Rule 29(2))
By 31st January of every year, every employer must forward to the Welfare Commissioner a copy of the extract from the Register in Form B, relating to the previous year