The Andhra Pradesh Labour Welfare Fund Act, 1987.

THE ANDHRA PRADESH LABOUR WELFARE FUND ACT, 1987
ACT No.34 of 1987
ARRAMGEMENT OF SECTIONS
SECTIONS
1.Short title, and commencement
2. Definitions
3. Constitution of Andhra Pradesh Labour Welfare Fund
4. Establishment and functions of Andhra Pradesh Labour Welfare
Board
5. Disqualifications and removal
6. Resignation of office by member and filling up of casual
vacancies
7. Power to appoint Committees
8. Unpaid accumulations transferred to the Fund and claims
thereto
9. Interest on unpaid accumulation of fines after notice of demand
10. Contribution to the Fund by employee and employer
11. Grants and advances by the Government
12. Vesting and application of the Fund
13. Power of Board to borrow
14. Deposits of Fund and placing of accounts and audit report
before the Government
15. Investment of Fund
16. Directions by Government to Board
17. Appointment and powers of Welfare Commissioner
18. Appointment of Inspectors
19. Appointment of clerical and others staff by Board
20. Power of Government over staff of Board in certain cases
21. Allotment of certain officers and staff to the Board
22. Transfer of Provident Fund to the Board
23. Powers of Government or authorised officer to call for records,
etc.
24. Mode of recovery of sums payable into the Fund, etc.,
25. Penalty for obstructing inspection or for failure to produce
documents, etc.,
26. Cognizance of offences
27. Offences by companies
28. Limitation of prosecution
29. Power to supervise the welfare activities of an establishment
30. Penalty for non compliance with the direction of the Board
30-A. Compounding of offences
31. Annual Report
32. Supersession of the Board
33. Delegation of powers
34. Members of Board, Welfare Commissioner, Inspectors and all
officers and servants of the Board to be public servants
35. Protection of action taken in good faith
36. Exemption
37. Power of Government to make rules
38. Power of Board to make regulations
39. Amendment of section 8 of the Central Act 4 of 1936
40. Amendment of section 8 of Central Act 8 of 1923
THE ANDHRA PRADESH LABOUR WELFARE FUND ACT, 1987
ACT No. 34 of 1987
[19th August, 1987]
AN ACT TO PROVIDE FOR THE CONSTITUTION OF A FUND FOR THE
FINANCING OF ACTIVITIES TO PROMOTE WELFARE OF LABOUR IN
THE STATE OF ANDHRA PRADESH AND FOR THE ESTABLISHMENT
OF BOARD FOR CONDUCTING SUCH ACTIVITIES AND FOR
MATTERS CONNECTED THEREWITH.
Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the Thirty eight Year of the Republic of India as follows:-
1. Short title and commencement - (1) This Act may be called the Andhra
Pradesh Labour Welfare Fund Act, 1987.
(2) It shall come into force on such date as the State Government may, by
notification, appoint.
2. Definitions – In this Act, unless the context otherwise requires,-
(1) ‘Board’ means the Andhra Pradesh Labour Welfare Board established
under section 4;
(2) ‘employee’ means:-
(i) any person who is employed for hire or reward to do any work,
skilled or unskilled, manual, supervisory, clerical, or technical, in
an establishment for a period of thirty days during the period of
twelve months, whether the terms of employment be express or
implied; but does not include any person-
(a) who is employed mainly in a managerial capacity; or
(b)1[XXXX]
(c) who is employed as an apprentice or on part time basis.
Explanation - An apprentice means a person who according to the Certified
Standing Orders applicable to the establishment is an apprentice or who is
declared to be an apprentice by the authority specified in this behalf by the
Government; and
(ii) any other person employed in any establishments whom the
Government, may by notification, declare to be an employee for the
purposes of this Act;
(3) ‘employer’ means any person who employs either directly or through
another person either on behalf of himself or any other person, one or more
employees in an establishment and includes--
(i) in a factory, any person named under section 7(1) (f) of the
Factories Act, 1948 (Central Act 63 of 1948) as the manager;
(ii) in any establishment, any person responsible to the
owner for the supervision and control of the employees or for
the payment of wages;
(4) ‘establishment’ means--
2[(i) a factory as defined in clause (m) of section 2 and / or a
factory as notified under sub-section 1 of section 85 of the
Factories Act, 1948 (Act No.63 of 1948)];
(ii) a motor transport undertaking as defined in the Motor
Transport Workers Act, 1961 (Central Act 27 of 1961);
1. Omitted by the Act No.7 of 2015, S.2.2. Substituted by the Act No.7 of 2015, S.2.
(iii) any other establishment as defined in section 2 (10) of
the1[Andhra Pradesh Shops and Establishments Act, 1966
(Act 15 of 1966)]; and includes a society registered under any
law in force in the State relating to registration of societies,
and a charitable 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;
2[Provided that the Government may, by notification
include any kind of establishment or establishments as it
may think fit.]
(5) ‘Fund’ means the Andhra Pradesh Labour Welfare Fund constituted
under section 3;
(6) ‘Government’ means the State Government;
(7) ‘independent member’ means a member of the Board who is not
connected with the management of any establishment or who is not employee;
and includes an officer of the Government nominated as a member;
(8) ‘Inspector’ means an Inspector appointed under section 18;
(9) ‘notification’ means a notification published in the Andhra Pradesh
Gazette and the word ‘notified’ shall be construed accordingly;
 (10) ‘prescribed’ means prescribed by the Government by the rules made
under this Act;
 (11) ‘unpaid accumulations’ means all payments due to an employee but
not paid to him within a period of three years from the date on which they
became due, whether before or after the commencement of this Act, including
the wages and gratuity legally payable, but does not include the amount of
contribution, if any paid by an employer to a Provident Fund established under
the Employees Provident Funds Act, 1952 (Central Act 19 of 195);
 (12) ‘Wages’ means all remuneration capable of being expressed in terms
of money which would, if the terms of the contract of employment, express or
implied were fulfilled, be payable to an employee in respect of his employment
or of work done in such employment and includes bonus payable under the
Payment of Bonus Act, 1965 (Central Act 21 of 1965), but does not include,--
(a) the value of any house accommodation, supply of light, water,
medical attendance, or any other amenity or any service excluded
from the computation of wages by general or special order of the
Government.
(b) any contribution paid by the employer to any pension fund or
provident fund or under any scheme of social insurance;
(c) any travelling allowance or the value of any travelling
concession;
(d) any sum paid to the employee to defray special expenses
entailed on him by the nature of his employment; or
 (e) any gratuity payable on termination of employment;
(13) ‘Welfare Commissioner’ means the Welfare Commissioner appointed
under section 17.
1. Now see the provisions of the Andhra Pradesh Shops and Establishment Act, 1988 (Act No.20 of 1988) in which
the Act 1966 was repealed.2. Proviso added by the Act No.7 of 2015, S.2.
3. Constitution of Andhra Pradesh Labour Welfare Fund - (1) The
Government shall constitute a fund to be called the Andhra Pradesh Labour
Welfare Fund, and notwithstanding anything contained in any other law for the
time being in force or in any contract or instrument, all unpaid accumulations
shall be paid, at such intervals as may be prescribed, to the Board, and be
credited to the Fund and the Board shall keep a separate account therefor until
claims thereto have been decided in the manner, provided for in section 8.
(2) There shall also be credited to the Fund,--
(a) unpaid accumulations paid to the Board under section 8;
(b) all fines including the amount realised under Standing Orders
issued under the Andhra Pradesh Industrial Employment
(Standing Orders) Rules, 1953 from the employees by the
employees notwithstanding anything contained in any agreement
between the employer and the employee.
(c) deductions made under the proviso to sub-section (2) of
section 9 of the payment of Wages Act, 1936.
 (d) contribution by employers and employees;
 (e) any interest by way of penalty paid under section 9;
(f) any voluntary donations;
(g) any amount raised by the Board from other sources to augment
the resources of the Board;
 (h) any fund transferred under sub section (5) of section 12;
(i) any sum borrowed under section 13;
(j) grants or advances made by the Government.
(k) any money deposited under sub-section (1) of section 8 of the
Workmens Compensation Act, 1923 (Central Act 8 of 1923) as
compensation in respect of a deceased workman where the
Commissioner for Workmens Compensation is satisfied after
necessary enquiry that no dependent exists, subject however, to
the deductions permissible under the said sub-section; as also any
amount remaining undisbursed out of such deposits.
(3) The sums specified in sub-section (2) shall be paid to, or collected by,
such agencies, at such intervals and in such manner, and the accounts of the
Fund shall be maintained and audited in such manner as may be prescribed.
4. Establishment and functions of Andhra Pradesh Labour Welfare Board-
(1) The Government shall, by notification establish a Board for the whole of the
State of Andhra Pradesh to be called the "Andhra Pradesh Labour Welfare
Board" for the purpose of administering the Fund and to carry on such other
functions as are assigned to the Board by or under this Act.
(2) The Board shall be a body corporate by the name of the Andhra
Pradesh Labour Welfare Board having perpetual succession and a common
seal, with power to acquire, hold and dispose off property, both movable and
immovable, and shall, by the said name, sue and be sued.
(3) The Board shall consist of such number of members as may be
prescribed in each of the following categories, namely:--
 (a) representatives of employers and employees in equal
proportion, to be nominated by the Government;
(b) independent members, to be nominated by the Government, as
follows: --
(i) Minister for Labour  shall be the Chairman;
(ii) the Secretary to Government, Labour Employment,
Nutrition and Technical Education Department, ex officio;
(iii) the Secretary to Government, Finance and Planning
(Finance) Department, ex officio;
(iv) the Secretary to Government, Industries Department, ex-
officio;
 (v) a woman member to represent women.
(4) Save as otherwise expressly provided in this Act, the term of office of
the members of the Board shall be three years commencing on the date on
which their names are notified.
(5) The allowances, if any, payable to the members of the Board and the
conditions of nomination of the representatives of the employers and employees
shall be such as may be prescribed.
5. Disqualifications and removal- (1) No person shall be nominated as or
continue to be, a member of the Board who--
(a) is a salaried official of the Board; or
(b) is or at any time has been adjudged insolvent or has suspended
payment of his debts or has compounded with his creditors; or
(c) is found to be of unsound mind, or;
(d) is or has been convicted by a Criminal Court for an offence
involving moral turpitude, unless such conviction has been set
aside; or
(e) is in arrears of any sum due to the Board.
(2) The Government may remove from office any member who--
(a) is or has become subject to any of the disqualifications
mentioned in sub-section (1) or
 (b) is absent without leave of the Board for more than three
consecutive meetings of the Board:
Provided that before taking action under this sub-section,
the member concerned shall be given an opportunity to make his
representation against the action proposed.
6. Resignation of office by member and filling up casual vacancies- (1) A
member may resign his office by giving notice thereof in writing to the
Government, and on the resignation being accepted, he shall be deemed to
have vacated his office as such.
(2) A casual vacancy in the office of a member shall be filled by
nomination of another person from the concerned category and a member so
nominated shall hold office for the unexpired portion of the term of the office of
his predecessor.
(3) No act or proceedings of the Board shall be invalid on the ground
merely of the existence of any vacancy in, or any defect in the constitution of,
the Board.
7. Power to appoint Committees- For the purpose of advising the Board in
the discharge of its functions and in particular for carrying into effect any of
the matters specified in sub-section (2) of section 12, the Board may constitute
one or more committees consisting of at least one member of the Board and
equal number of representatives of employees and employers.
8. Unpaid accumulations transferred to the Fund and claims thereto- (1)
All unpaid accumulations shall, subject to other provisions of this section, be
deemed to be abandoned property and be transferred to the control and
administration of the Board and shall vest in the Board.
(2) Any unpaid accumulations transferred to the Board in accordance
with the provisions of this Act shall, on such transfer, discharge an employer of
the liability to make payment to an employee in respect thereof, but to the
extent only of the amount transferred to the Board; and the liability to make
payment to the employee to the extent aforesaid shall be deemed to be
transferred to the Board.
(3) As soon as possible, after the transfer of any unpaid accumulations to
the Board, the Board shall publish a notice, containing such particulars as
may be prescribed, in the following manner:-
(a) by exhibiting on the notice board of the establishment in which
the unpaid accumulations were earned;
(b) by publishing in the Andhra Pradesh Gazette;1[XXXX]
(c)1[XXXX]
(4) Where any question arises whether the notice referred to in sub -
section (3) was given publicity as referred by that sub-section, a certificate to
that effect given by the Board shall be conclusive proof of such publication.
(5) Where a claim is received whether in pursuance of the notice
aforesaid or otherwise,2[within a period of one year from the date of
publication of the notice in respect of such claim], the Board shall transfer
such claim to the authority appointed under section 15 of the Payment of
Wages Act. 1936, (Central Act 4 of 1936), having jurisdiction in the area in
which the establishment is situate, and the said authority shall proceed to
adjudicate upon, and decide such claim; and in hearing such claim, the said
authority shall have the same powers conferred by and follow the same
procedure, in so far as it is applicable as laid down by or under the provisions
of that Act.
(6) If the said authority, after making the enquiry into the validity of any
claim, is satisfied that any such claim is valid, and the employee is entitled to
receive payment, it shall pass an order directing that the unpaid accumulation
or any part thereof in relation to which the claim is made shall cease to be
deemed to be abandoned property and to be transferred to the Board and that
the Board shall pay the whole or such part of the accumulation as the
authority decides to be property due, to the employee; and the Board shall
make the payment accordingly:
Provided that the Board shall not be liable pay any sum in excess of that
transferred under sub-section (1) of section 3 to the Board as unpaid
accumulations in respect of the claim.
 (7) Where a claim for payment is refused by the said authority, the
employee shall have a right of appeal in the cities of Hyderabad and
Secunderabad, to the Court of Small Causes, and elsewhere, to the District
Court, and the Board shall comply with any order made by the Court in such
appeal. Every appeal under this sub-section shall lie within sixty days from the
date of communication of the order of refusal of the said authority.
(8) The decision of the said authority if no appeal is filed, and the
decision of the Court in appeal, shall be final and conclusive as to the right to
receive payment, as to the liability of the Board to pay and also as to the
amount, if any, so payable.
(9) Where no claim is made within the time specified in sub-section (5) or
a claim made has been refused as aforesaid by the said authority and no
appeal has been filed within the time allowed for such appeal or an appeal filed
has been dismissed by the court, as the case may be, then the unpaid
accumulations in respect of such claim shall accrue to, and vest in, the State
1. Omitted by the Ac No.7 of 2015, S.3.2. Substituted by the Act No.7 of 2015, S.3.
as bona vacantia, and shall thereafter, without further enquiry and declaration,
be deemed to be transferred to, and form part of the Fund.
9. Insert on unpaid accumulation of fines after notice of demand- (1) If an
employer does not pay to the Board any amount of unpaid accumulations of
fines realised from the employees, within the time specified therefor by or order
this Act, the Welfare Commissioner may serve or cause to be served a notice on
such employer to pay the amount within the period specified therein which
shall not less than thirty days from the date of service of such notice.
(2) If the employer fails, without sufficient cause, to pay any such
amount within the period specified in the notice, he shall, in addition to the
amount, pay by way of penalty to the Board simple interest,-
(a) for the first three months at one per cent of the said amount for
each complete month or part thereof after the last date by which
he should have paid it according to the notice; and
(b) for each complete month or part thereafter at one and half
percent of that amount during the time he continues to make
default in the payment of that amount:
Provided that the Welfare Commissioner may, subject to
such conditions as may be prescribed, remit the whole or any part
of the penalty in respect of any period.
10. Contribution to the Fund by employee and employer- (1) Every
employee shall contribute1[thirty rupees] per year to the Fund and every
employer shall, in respect of each such employee, contribute1[seventy rupees]
per year to the Fund.
2[Provided that the Government may, by notification, revise from time to
time the amount of contribution payable by every employee and every employer
in respect of all such employees to the Fund.]
(2) Notwithstanding anything contained in any other law for the time
being in force, the employer shall be entitled to recover from the employees the
employees contribution by deduction from his wages in such manner as may
be prescribed and such deduction shall be deemed to be a deduction
authorised by or under the Payment of Wages Act, 1936 (Central Act 4 of
1936).
11. Grants and advances by the Government- The Government may, from
time to time, make grants and advance loans to the Board to the extent of the
Fund available for the purposes of this Act, on such terms and conditions as
the Government may, in each case, determine.
12. Vesting and application of the Fund- (1) The Fund shall vest in and be
held and applied by the Board as trustees subject to the provisions and for the
purposes of this Act. The moneys therein shall be utilized by the Board to
defray the cost of carrying out measures which may be specified by the
Government, from time to time, for promoting the welfare of labour and of their
dependents.
(2) Without prejudice to the generality of the provisions in sub-section
(1), the money in the Fund may be utilized by the Board to defray expenditure
on the following:-
(a) labour welfare centres under the control of the Labour
Department of the Government;
(b) reading rooms and libraries;
(c) games and sports;
(d) community necessities;
1.  Substituted by the Act No.7 of 2015, S.4.2.  Proviso added by the Act No.7 of 2015, S.4.
(e) excursions tours and holiday homes;
(f) entertainment and other forms of recreation;
(g) home industries and subsidiary occupations for women and
unemployed persons;
(h) corporate activities of social nature;
(i) vocational training;
 (j) convalescent homes for tuberculosis patients;
(k) pre-schools;
(l) nutritious food to children of employees;
(m) construction and maintenance of the labour welfare centre
buildings;
 (n) cost of administering the Act including the salaries and
allowances of the staff appointed for the purposes of the Act;
 (o) medical aid to employees for specialised treatment in deserving
cases; and
(p) such other objects as would in the opinion of the Government
improve the standard of living and ameliorate the social conditions
of labour:
Provided that the Fund shall not be utilized in financing any
measure which the employer is required under any law for the time
being in force to carry out:
 Provided further that unpaid accumulations and fines shall
be paid to the Board and be expended by it under this Act,
notwithstanding anything in the Payment of wages Act, 1936
(Central Act 4 of 1936), or any other law for the time being in force.
(3) The Board may, with the approval of the Government make a grant
out of the Fund to any employer, any local authority or any other body in aid of
any activity for the welfare or labour approved by the Government.
(4) If any question arises whether any particular expenditure is or is not
debitable to the Fund, the matter shall be referred to the Government, whose
decision thereon shall be final.
(5) It shall be lawful for the Board to continue any activity financed from
the labour welfare fund of any establishment, if the said fund is duty
transferred to the Board.
13. Power of Board to borrow- Subject to the other provisions of this Act the
Board may, from time to time, with the previous sanction of the Government,
and subject to such conditions as may be specified by the Government in this
behalf borrow any sum required for the purposes of the Act.
14. Deposits of Fund and placing of accounts and audit report before the
Government- (1) All moneys and receipts forming part of the Fund shall be
deposited in the Reserve Bank of India constituted under the Reserve Bank of
India Act, 1934 (Central Act 2 of 1934), or in the State Bank of India,
constituted under the State Bank of India Act, 1955 (Central Act 23 of 1955),
or any corresponding new Bank as defined in the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 (Central Act 5 of 1970), or
any other schedule bank or the State Co-operative Bank or such other co -
operative bank as the Government may notify in this behalf and the bank
account shall be operated upon by such officers of the Board as may be
authorised by the Board and in such manner as may be prescribed.
(2) The accounts of the Board as certified by the auditor, together with
the audit report thereon shall be forwarded yearly to the Government and the
Government may issue such instructions to the Board in respect thereof as
they may deem fit and the Board shall comply with all such instructions. A
copy of the accounts of the Boards certified by the Auditor together with a copy
of the audit report thereon shall be laid on the table of the Legislative Assembly
of the State.
15. Investment of Fund- Where the Fund or any portion thereof cannot be
utilised within a period of ninety days for fulfilling the objects of the Act, the
Board shall invest the same in any of the securities specified in clauses (a) to
(d) of section 20 of the Indian Trusts Act, 1882 (Central Act 2 of 1882), or in
fixed deposit bonds of the State Co-operative Bank or such other Co-operative
Bank as the Government may notify from time to time in this behalf, or in such
other security as may be expressly authorised by the Government in this
behalf.
16. Directions by Government to Board- The Government may give to the
Board such directions as in their opinion are necessary or expedient in
connection with the expenditure from the Fund or for carrying out the
purposes of this Act and it shall be the duty of the Board to comply with all
such directions.
17. Appointment and powers of Welfare Commissioner- (1) The Board
shall, with the previous approval of the Government, appoint an officer of the
Labour Department not below the rank of Joint Commissioner of Labour, as
Welfare Commissioner who shall be the Chief Executive Officer of the Board. It
shall be the duty of the Welfare Commissioner to ensure that the provisions of
this Act and the rules made thereunder are duly carried out, and for this
purpose he shall have the power to issue such orders, not inconsistent with the
provisions of this Act or the rules made thereunder, as he deems fit, including
any order implementing the decisions of the Board taken by or under this Act.
(2) Notwithstanding anything in sub-section (1), the first Welfare
Commissioner shall be appointed by the Government, as soon as may be
practicable, after the commencement of this Act for such period, not exceeding
five years, and on such conditions, as the Government may think fit.
18. Appointment of Inspectors - (1) The Government may appoint as many
Inspectors as are required to inspect records in connection with the sums
payable into the Fund.
(2) Any Inspector may,-
(a) with such assistance as he thinks fit, enter at any reasonable
time any premises for carrying out the provisions of this Act;
(b) exercise such other powers as may be prescribed;
(c) make such examination and hold such inquiry as may be
necessary for ascertaining whether the provisions of this Act, have
been and are being complied with;
(d) require the production of any prescribed register and any other
document in possession of the employer in connection with the
sums payable to the Fund.
19. Appointment of clerical and other staff by Board- The Board shall have
power to appoint such officers and clerical and executive staff as it thinks fit to
carry out the purposes of the Fund and to supervise and control the activities
of any other body financed from the Fund:
Provided that the expenditure on account of the officers and servants
appointed by the Board and any other administrative expenses to be incurred
by the Board shall not exceed fifteen percent of the annual income of the Fund.
20. Power of Government over staff of Board in certain cases- The
Government shall have power to appoint any person to, or remove any such
person from, the service of the Board, in respect of whom the Board by a
special resolution of more than one-third of its members, so authorises the
Government.
21. Allotment of certain officers and staff to the Board- (1) As soon as may
be after the commencement of this Act, the Government may, after consulting
the Board, direct by general or special order that such of the officers and other
servants serving immediately before the notified date in connection with the
affairs of the State as are specified in the order shall be allotted to serve in
connection with the affairs of the Board with effect on and from such date as
may be specified in the order;
Provided that no such direction shall be issued in respect of any officer
or other servants without his consent for such allotment:
Provided further that the conditions of service applicable immediately
before the notified date to any such person shall not be varied to his dis-
advantage except with the previous approval of the Government.
(2) With effect on and from the notified date, the officers and other
servants specified in such order shall become employees of the Board and shall
cease to be officer or servants of the Government.
Explanation- In this section, ‘notified date’ means such date, as is notified by
the Government in this behalf.
22. Transfer of Provident Fund to the Board- (1) The moneys standing to the
credit under the Provident Fund Account of any officer or servant allotted from
the service of the Government to the service of the Board on the date specified
in the order under sub-section (1) of section 21 shall stand transferred to and
vest in the Board with effect on and from such date.
(2) The Board shall, as soon as may be after such date, constitute in
respect of the moneys transferred to and vested in it under sub-section (1); a
similar fund and may invest the accumulations under the fund in such
securities and subject to such conditions, as may be specified by the Board
with the approval of the Government.
23. Powers of Government or authorised officer to call for records, etc. -
The Government or any officer authorised by them in this behalf, may call for
and examine the records of the Board for the purpose of supervising the
working of the Board and may pass such orders as they or he may think fit.
24. Mode of recovery of sums payable into the Fund, etc.,- Any sum
payable into the Fund under this Act shall, without prejudice to any other
mode of recovery, be recoverable on behalf of the Board as an arrear of land
revenue.
25. Penalty for obstructing inspection or for failure to produce
documents, etc.,- Any person who wilfully obstructs an Inspector in the
exercise of his powers or discharge of his duties under this Act or fails to
produce for inspection on demand by an Inspector any register, record or other
document maintained in pursuance of the provisions of this Act or the rules
made thereunder or to supply to him on demand true copies of any such
document shall, on conviction, be punished, -
(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 six months or with fine which may
extend to one thousand rupees, or with both:
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.
26. Cognizance of offences- (1) No court shall take cognizance of any offence
punishable under this Act except on a complaint by, or with the previous
sanction in writing of, the Welfare Commissioner.
(2) No court inferior to that of1[a Magistrate of second class] shall try any
offence punishable by or under this Act.
27. Offences by companies- (1) If the person committing an offence under this
Act is a company, every person who, at the time the offence was committed,
was incharge of, and was responsible to, the company for the conduct of the
business of the company as well as the company shall be deemed to be guilty
of the offence, and shall be liable to be proceeded against and punished
accordingly:
Provided that nothing contained in this sub-section shall render such
person liable to any punishment provided in this Act, if he proves that the
offence was committed without his knowledge, or that he exercised all due
diligence to prevent the commission of the offence.
(2) Notwithstanding anything in sub-section (1) where an offence under
this Act has been committed by a company and it is proved that the offence
has been committed with the consent or connivance of, or is attributable to any
neglect on the part of any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer shall also be
deemed to be guilty of that offence and shall be liable to be proceeded against
and punished accordingly.
Explanation:-For the purposes of this section, ‘company’ means a body
corporate and includes a firm or other association of individuals; and ‘director’
in relation to a firm means a partner in the firm.
28. Limitation of prosecution- No court shall take cognizance of an offence
punishable by or under this Act unless a complaint thereof is made within six
months of the date on which the offence is alleged to have been committed.
29. Power to Supervise the welfare Activities of an establishment- In
regard to any money set apart in any establishment specifically for the purpose
of promoting the welfare of the employees in such establishment, the Board
shall have power
(i) to require the production of any document in possession
of the employer of the establishment in connection with such
money to satisfy itself as to whether such money is being
applied for such purposes;
(ii) to call for any such information from the employer of the
establishment as it may deem relevant; and
(iii) to issue such directions to the employer of the
establishment as it may deem fit for the purpose of utilising
the Fund for promoting the welfare of the employees in the
establishment.
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 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
1. Substituted by the Act No.7 of 2015, S.5.
(b) for a second or subsequent offence, with imprisonment for a
term which may extend to six months, or with fine which may
extend to one thousand rupees or with both:
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.
1[30-A. Compounding of offences –The Government may, by notification,
empower the inspectors to compound the offences punishable under the
provisions of the Act or the rules made thereunder, at such rates, as may be
prescribed by the Government from time to time.]
31. Annual Report- The Board shall, as soon as may be after the end of each
year, prepare and submit to the Government before such date and in such
form as may be prescribed, a report giving an account of its activities during
the previous year, and the report shall also give an account of the activities, if
any, which are likely to be undertaken by the Board in the next year. A copy of
such report shall be laid on the table of the Legislative Assembly of State.
32. Supersession of the Board- (1) If the Government are of opinion that the
Board is unable to perform or has persistently made default in the performance
of, the duty imposed on it by or under this Act or has exceeded or abused its
powers, they may, by notification, supersede the Board for a period not
exceeding six months as may be specified in the notification:
Provided that before issuing a notification under this sub-section, the
Government shall, by notice require the Board to show cause within such
period as may be specified in the notice why it would not be superseded and
shall consider the explanations and objections, if any, of the Board.
(2) Upon the publication of a notification under sub-section (1)
superseding the Board,-
(a) the Chairman and all the members of the Board shall, as from
the date of supersession, vacate their offices as such;
(b) all the powers and duties which may, by or under the
provisions of this Act be exercised or performed by or on behalf of
the Board and the Chairman shall, during the period of
supersession be exercised and performed by such authority or
person as the Government may direct:
(c) all funds and other property vested in the Board shall, during
the period of supersession, vest in the authority or person referred
to in clause (b); and
(d) all liabilities, legally subsisting and enforceable against the
Board shall be enforceable against the authority or person referred
to in clause (b) to the extent the funds and properties vested in it
or him.
(3) On the expiration of the period of supersession specified in the
notification issued under sub-section (1), the Government may, -
(a) extend the period of supersession for such further period not
exceeding six months as they may consider necessary; or
(b) reconstitute the Board in the manner provided in sub-section
(3) of section 4.
33. Delegation of powers- (1) The Government may, by notification; authorise
any authority or officer to exercise any of the powers vested in them by or
under this Act except the power to make rules under section 37 and may in
like manner withdraw such authorisation.
1. Inserted by the Act No.7 of 2015, S.6.
(2) The Board may by, general or special order in writing delegate to the
Welfare Commissioner or other officer of the Board such of its powers and
functions under this Act except the power to make regulations under section
38, as it may deem necessary and it may in like manner withdraw such
delegation.
(3) The exercise of any power delegated under sub-section (1) or sub -
section (2) shall be subject to such restrictions and conditions as may be
specified in the order and also to control and revision by the Government or by
such officers as may be empowered by the Government in this behalf or, as the
case may be by the Board or such officer as may be empowered by the Board in
this behalf.
(4)The Government or the Board, as the case may be, shall also have the
power to control and revise the acts and proceedings of any officer so
empowered.
34. Members of Board, Welfare Commissioner, Inspectors and all officers
and servants of the Board to be public servants- All the members of the
Board, the Welfare Commissioner, Inspectors and all Officers and servants of
the Board shall be deemed to be public servants within the meaning of section
21 of the Indian Penal Code, 1860 (Central Act 45 of 1860).
35. Protection of action taken in good faith - (1) No suit, prosecution or
other legal proceedings shall lie against any person for anything which is in
good faith, done or intended to be done in pursuance of this Act or any rule or
order made thereunder.
(2) No suit or other legal proceedings shall lie against the Government or
the Board for any damage caused, or likely to be caused by any thing which is,
in good faith, done or intended to be done pursuance of this Act or any rule or
order made thereunder.
36. Exemption- The Government may, by notification, exempt any
establishment or class of establishments from all or any of the provisions of
this Act subject to such conditions as may be specified in the notification.
37. Power of Government to make rules- (1) The Government may, by
notification, make rules to carry out all or any of the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, such rule may provide for all or any of the following matters, namely:
(a) the agency for and the manner of collection of sums referred to
in sub-section (3) of section 3, and the period within which the
same shall be paid to the credit of the Fund;
 (b) the manner in which the accounts of the Fund shall be
maintained and audited under sub-section (3) of section 3;
(c) the procedure for making grants out of the Fund;
 (d) the procedure for defraying the expenditure incurred in
administrating the Fund;
(e) the number of representations of the employers and employees,
on the Board;
(f) the allowances, if any, payable to them under section 4;
(g) the procedure to be followed at the meetings of the Board and
the manner in which the Board shall conduct its business;
 (h) the particulars in the notice regarding unpaid accumulations;
 (i) the duties and powers of the Welfare Commissioner and the
Inspectors and the conditions of service of the Welfare
Commissioner and the Inspectors and other staff appointed by the
Board under this Act;
(j) the percentage of the annual income of the Fund beyond which
the Board may not spend on the staff and on other administrative
expenses;
(k) the registers and records to be maintained by the Board or its
officers and servants under this Act including the register to be
kept separately for the account of unpaid accumulations;
 (l) the publication of the report of the activities of bodies financed
from the Fund together with a statement of receipts and
expenditure of the Fund and statement of accounts;
(m) any other matter which under this Act is or may be prescribed.
(3) Every rule made under this Act shall immediately after it is made, be
laid before the Legislative Assembly of the State if it is in session and if it is not
in session in the session immediately following for a total period of fourteen
days which may be comprised in one session or in two successive sessions, and
if, before the expiration of the session in which it is so laid or the session
immediately following the Legislative Assembly agrees in making any
modification in the rule or in the annulment of the rule, the rule shall, from the
date on which the modification or annulment is notified, have effect only in
such modified form or shall stand annulled as the case may be, so however
that any modification or annulment shall be without prejudice to the validity of
anything previously done under that rule.
38. Power of Board to make regulations- (1) The Board may, by notification,
make regulations, not inconsistent with this Act and the rules made
thereunder, for the purpose of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, such regulations may provide for,-
(a) all matters expressly required or allowed by this Act to be laid
down by regulations;
(b) the terms and the conditions of appointment and service and
the scales of pay of officers and servants of the Board, including
the payment of travelling and daily allowances in respect of
journeys undertaken by such officers and servants of the Board;
(c) the supervision and control over the acts and proceedings of the
officers and servants of the Board and the maintenance of
discipline and conduct among the officers and servants of the
Board;
 (d) the procedure in regard to the transaction of business at the
meetings of the Board including the quorum:
 (e) the purpose for which and the manner in which temporary
association of persons may be made;
 (f) the duties, the functions, the terms and conditions of service of
the members of the committees;
(g) the manner and the form relating to the maintenance of the
accounts of the Board.
(3) No regulation or its cancellation or modification shall have effect until
the same shall have been approved by the Government.
(4) The Government may, by notification rescind any regulation made
under this section and thereupon, the regulation shall cease to have effect.
39. Amendment of section 8 of the Central Act 4 of 1936- In sub-section
(8) of section 8 of the Payment of Wages Act, 1936, before the Explanation, the
following shall be inserted, namely:-
  "but in the case of any establishment to which the Andhra Pradesh
Labour Welfare Fund Act, 1987 applies, all such realisations shall be
paid into the Fund constituted under the said Act".
40. Amendment of section 8 of Central Act 8 of 1923- To sub- section (4)
of section 8 of the Workmen’s Compensation Act, 1923, the following proviso
shall be added, namely:-
 "Provided that in respect of a workman belonging to an establishment to
which the Andhra Pradesh Labour Welfare Fund Act, 1987 applies, the
Commissioner shall pay the said balance of the money into the Fund
constituted under that Act in lieu of repaying it to the employer".

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