Saturday, June 13, 2009

What should A Factory owner know about the Punjab Labour Welfare Fund Act, 1965

Every employer of an establishment shall maintain a register of wages in Form-A(LW) and a consolidated register of unclaimed wages and fines in Form-B(LW)(Rule-22).
Every employer shall by the 31st January , every year forward to the Welfare Commissioner, a copy of the abstract from the register in Form-B(LW) pertaining to the previous year. (Rule-22)
Every employer shall pay, all fines realized from the employees & remaining unutilized and all unpaid accumulations held by the employer, in cash or by money order or by postal order or by demand draft or cheque drawn on any schedule Bank duly crossed in favour of the 'Welfare Commissioner, Haryana, 30 Bays Building, Sector 17, 2nd Floor, Room No. 51, Chandigarh (section-3 & 9).
All fines realized from the employees and unpaid accumulations during the quarters, ending the 31st March, the 30th June, the 30th September and the 31st December shall be paid by the employer by the 1st May, the 1st August, the 1st November and the 1st Feburary, succeeding such quarter and a statement giving particulars of the amounts so paid shall be submitted by him alongwith such payment to the Welfare Commissioner. Besides, this Act requires each employer and employee to contribution ten rupees and five rupees, respectively, per month to the Fund. This amount is required to be deposited by 31st December of every year (section-3,9 & 9A).
If an employer held the unpaid accumulation or any portion of fines realized from the employees and has not paid in accordance with rule 3, the Welfare Commissioner may serve a notice and the employer shall comply with the notice within 14 days of the receipt thereof. (Rule-4)
Every employer should give full assistance to the “Inspector” Declared under the Act at the time of inspection & produce records or documents and supply him a copy thereof or to give him a statement in writing (section-15 & Rule-19).
Any sums payable into the Fund under this Act, shall be recoverable on behalf of the Board as an arrear of land revenue. (section-20)
Any person, who contravernes any of the provisions of the Act or any rule made thereunder or who willfully obstructs an ‘Inspector’ in the exercise of his powers or fails to produce records or other documents, shall, on conviction, for the first offence be fined upto five thousand rupees but not less than two thousand rupees & for a second or subsequent offences the imprisonment for a term of three months, or with fine upto ten thousand rupees but not less than three thousand rupees or with both, be punished (section- 26A).
The employer shall be required to pay interest at the rate of twelve per cent per annum on the amount of unpaid accumulations in case he fails to deposit the same within a period of one year from the prescribed date. The rate of interest thereafter shall be twenty per cent per annum (section-3).
Any employer who fails to pay the contribution amount within a period of one month from the date specified under sub-section (2), shall be liable to pay interest at the rate of twelve percent per annum until such time the amount is actually deposited with the Welfare Commissioners (section-9A(4)).

Labour Department, Haryana 30 Bays Building, Sector - 17, Chandigarh 160017 Phone: 0172 - 2701373 Fax: 0172 -2701266 E.Mail:

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