Telangana Labour Welfare Fund Act, 1987

Background

The Telangana Labour Welfare Fund Act, 1987 was enacted to provide for the constitution of a Labour Welfare Fund and the establishment of a Welfare Board for financing and promoting measures to improve the welfare of labour and their dependants. The accompanying Telangana Labour Welfare Fund Rules, 1988 prescribe the procedural framework for registration, contributions, maintenance of registers, filing of returns, and remittance of fines and unpaid accumulations. The Fund is intended to be used for welfare activities such as housing, education, medical facilities, recreation, and other benefits for workers.

Applicability

  • The Act applies to all establishments in Telangana including:
    • Factories;
    • Motor transport undertakings;
    • Any other establishments as defined under the Andhra Pradesh Shops and Establishments Act, 1966;
    • Registered societies, and charitable or other trusts (whether registered or not) carrying on any business or trade or related work.
    • Establishments that employed 20 or more persons on any working day during the preceding 12 months.

Except: An establishment, not being a factory, belonging to or under the control of the Central or any State Government. They need to contribute to the Telangana Labour Welfare Fund. This includes all employees, including apprentices and part time employees. However, this excludes those a) employees working in a managerial capacity or b) supervisory position and receiving wages more than Rs. 1,600/‐ monthly.

Compliance under the Rules in accordance with the Act

  • Labour Welfare Fund Registration

The Act applies to all establishments including (i) factories, (ii) motor transport undertakings, and (iii) any other establishment as defined in the Andhra Pradesh Shops and Establishments Act, 1966. It also includes registered societies and charitable or other trusts (whether registered or not) carrying on business or trade or related work, employing 20 or more persons on any working day during the preceding 12 months. It does not include establishments belonging to or under the control of the Central or State Government (other than factories). Covered employers must contribute to the Telangana Labour Welfare Fund, which includes all employees, apprentices, and part-time employees, except (a) those in managerial capacity or (b) those in supervisory positions drawing more than ₹1,600 per month.

  • Payment of Labour Welfare Fund Contribution in Telangana (Section 10, Rule 6)
    The contribution payable under the Act must be paid annually to the Telangana Labour Welfare Board by 31st January of the succeeding year, along with a statement in Form-F giving full particulars. The cut-off date for contribution is that employees must be on the rolls as on 31st December.
  • Payment of fines and of unpaid accumulations by employer (Rule 5)

All fines realized from employees and all unpaid accumulations during the quarters ending 31st March, 30th June, 30th September, and 31st December shall be paid by the employer to the Welfare Commissioner on or before 15th April, 15th July, 15th October, and 15th January respectively, along with a statement of particulars of the amounts paid. The Act applies to all establishments with 20 or more employees, covering all categories of employees including apprentices and part-timers, except those in managerial capacity or supervisory positions drawing more than ₹1,600 per month. The cut-off date for employee coverage is 31st December.

  • Form D: Register of Wages by Employer in Telangana (Rule 4(1)(a))

Every employer of an establishment shall maintain and preserve for a period of 5 years a Register of Wages in Form D, except where a similar register is maintained under another law. The requirement applies to establishments employing 20 or more employees under the Act, covering all workers except managerial and certain supervisory staff.

  • Form G: Consolidated Register of Unclaimed Wages and Fines maintained by Employer in Telangana (Rule 4(1)(b))

Every employer of an establishment shall maintain and preserve for a period of 5 years a consolidated Register of Unclaimed Wages and Fines in Form G. This applies to establishments employing 20 or more persons, covering all workers except those in managerial or higher supervisory positions.

  • Furnishing of a copy of the extract from the register in Form ‘E’ (Rule 4(2))
    By 31st January each year, the employer must forward to the Welfare Commissioner a copy of the extract from the register in Form ‘E’ for the preceding year. This obligation applies to all establishments employing 20 or more persons under the Act.
  • Form A: Notice of Opening (Rule 3(1))

A Notice in Form A must be served by the employer on the Welfare Commissioner within 30 days of the Telangana Labour Welfare Fund Rules, 1988 becoming applicable to an establishment. This applies to factories, registered societies, charitable or other trusts with 20 or more employees.

  • Form B: Notice of Change (Rule 3(2))

The employer must give a Notice in Form B to the Welfare Commissioner within 30 days of any change in the information furnished earlier in Form A relating to the opening of the factory or establishment. This applies to factories, registered societies, charitable or other trusts with 20 or more employees.

Penalty & Punishment

  • As per Section 30: Penalty for non compliance 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 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 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 Telangana Labour Welfare Fund Act, 1987 ensures that employers contribute to a statutory welfare fund which benefits workers and their dependants through various welfare schemes. Compliance includes timely registration, contribution remittance, maintenance of registers, reporting, and filing statutory returns. For establishments with 20 or more employees, adherence to these provisions is mandatory to remain legally compliant and to support the welfare objectives of the State.

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