LexThe Gujarat Labour Welfare Fund Act, 1953
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GOVERNMENT OF GUJARAT
LEGISLATIVE AND PARLIAMENTARY AFFAIRS DEPARTMENT
Bombay Act No. XL of 1953
The Gujarat Labour Welfare Fund
Act, 1953
(As modified up to the 31st October, 2012)
THE GUJARAT LABOUR WELFARE FUND ACT, 1953.
(Bom. XL of 1953)
CONTENTS
PREAMBLE.
SECTIONS. PAGE NO.
1. Short title, extent and commencement. 3
2. Definitions. 3
2A. [ Deleted]. 5
3. Welfare Fund. 5
4. Board. 6
4A. [ Deleted. ] 7
5. Disqualifications and removal. 7
6. Resignation of office by member and filling up of casual vacancies. 7
6A. Unpaid accumulations and claims thereto. 8
6B. Contribution. 9
6C. Interest on unpaid accumulations, fines and contributions after notice of
demand. 11
7. Vesting and application of Fund. 11
8. Power of Board to borrow. 12
9. Investment of Fund. 12
10. Directions by State Government to Board. 12
11. Appointment and powers of Welfare Commissioner. 12
12. Appointment of Inspectors. 12
13. Absorption of the existing staff under Commissioner of Labour. 13
14. Appointment of clerical and other staff by Board. 13
15. Power of State Government to remove any person on staff of Board. 13
16. Power of State Government or authorised officer to call for records etc. 14
17. Mode of recovery of sums payable into Fund, etc. 14
17A. Penalty for failure to make payment of unpaid accumulations etc. 14
SECTIONS. PAGE NO.
17B. Penalty for unlawful deduction. 14
17C. Penalty for obstructing inspectors excercising powers or discharging
duties etc. 14
17D. Offences by companies. 14
17E. Provisions relating to jurisdiction. 15
18. Supersession of Board. 15
19. Rules. 15
20. Members of Board, Welfare Commissioner, Inspectors and all officers
and servants of Board to be public servants. 16
21. Protection to person acting in good faith. 16
22. Exemption. 16
23. Amendment of section 8 of Act IV of 1936. 16
BOMBAY ACT NO. XL OF 1953. 1
[ THE GUJARAT LABOUR WELFARE FUND ACT, 1953. ]
[ 17th June, 1953. ]
Amended by Bom. 16 of 1956.
Adapted and modified by the Bombay Labour Welfare Board (Reconstitution) Order, 1959.
Adapted and modified by the Bombay Labour Welfare Board (Reconstitution) Order, 1960.
Adapted and modified by the Gujarat Adaptation of Laws ( State of Concurrent Subjects ) Order,
1960. Amended by Guj. 5 of 2005.
Amended by Guj. 47 of 1961.
Amended by Guj. 8 of 1963.
Amended by Guj. 29 of 1973.
Amended by Guj. 36 of 1980.
Amended by Guj. 1 of 1999.
Amended by Guj. 5 of 2005.
Amended by Guj. 15 of 2011.
An act to provide for the constitution of a Fund for the financing of activities
to promote welfare of labour in the State of 2[Gujarat] 3[for conducting
such activities and for certain other purposes ].
WHEREAS it is expedient to constitute a Fund for the financing of activities to promote
welfare of labour in the State of 2[Gujarat] 3[for conducting such acti vities and for certain other
purposes ] it is hereby enacted as follows :—
1. (1) This Act may be called the 3a[Gujarat] Labour Welfare Fund Act, 1953.
4[(2) It extends to the whole of the State of Gujarat.]
(3) It shall come into force in such area and on such date as the State Government may,
by notification in the Official Gazette, appoint in this behalf.
2. In this Act, unless the context otherwise requires—
(1) "Board" means 4[5[the Gujarat Labour Welfare Board ] constituted under section 4;
6[(1A) "Contribution" means the sum of money payable as contribution to the Board in
accordance with the provisions of section 6B. ].
(2) "Employee" means any person who is employed for hire or reward to do any work,
skilled or unskilled, 7[ manual, clerical, Supervisory or technical] in an establishment 8[
but does not include any person.]
(a) Who is employed mainly in a managerial capacity, or,
(b) Who, being employed in a supervisory capacity, draws wages exceeding
9[three thousand and five hundred] per mensem or exercises, either by the nature
of the duties attached to the office or by reason of the powers vest ed in him,
functions mainly of a managerial nature. ]
Short title extent
and commence-
ment.
Definitions.
(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 (i) (f) of the Factories Act 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—
(i) a factory;
(ii) a tramway or motor omnibus service; and
10[(iii) any establishment within the meaning of the Bombay Shops and
Establishments Act, 1948, which employs, or on any working day during, the
twelve months preceding the specified date employed, ten or, more persons :
Provided that, any such establishment shall, subject to the provision
contained in the succeeding proviso continue to be an establishment for the
purposes of this Act, notwithstanding a redu ction in the number of persons to
less than ten at any subsequent time:
Provided further that, where or a continuous period of not less than
three months the number of persons employed therein has been less than ten,
such establishment shall leases to be an establishment for the purposes of this
Act with effect from the beginning of the month following the expiry of the said
period of three months, and the employer shall, within one month from the date
of such cessation, intimate by registered post the fac t thereof to such authority as
the State Government may specify in this behalf." ]
(5) "Factory" means a factory as defined in section 2 (m) of the Factories Act 1948 ;
(6) "Fund" means the 11[ 12[ Labour Welfare Fund] constituted under section 3 ;
(7) "Independent member" means a member of the Board who is not connected with the
management of any establishment or who is not an employee, and includes an officer of
Government nominated as a member.
(8) "Inspector" means an Inspector appointed under section 12 ; 13[ * * * * * * * * * * *]
(9) "Prescribed" means prescribed by rules made under this Act ;
14[''(9A) "specified date" in relation to any establishment for the purpose of payment to
the Board of any sum specified in item (a), (b) o r (bb) of subsection (2) of section 3 shall
be the date on or before which any such sum becomes payable to the Fund, "] "
(10) "Unpaid accumulations" means all payments due to the employees but not made to
them within a period of 15[one year] from the date on which they became due whether
before or after the commencement of this Act including the wages, and gratuity legally
payable 16[ but not including the amount of contribution if any, paid by an employer to a
provident fund established under the Employees' Provident Funds Act, 1952].
17[(11) "Wages" means as defined in clause (vi) of section 2 of the Payment of wages
LXIII of 1948
Bom. LXX IX of
1948.
LXIII of 1948.
XIX of of 1952.
IV of 1936
Act, 1936. ]
(12) "Welfare Commissioner" means the Welfare Commissioner appointed under section
11.
2A. [Construction of certain references in the Act] Deleted by Guj. 47 of 1961, s. 5.
3. 18[(1) The State Government shall constitute a fund called the Labour Welfare Fund and
notwithstanding anything contained in any other law for the time being in force, the sums
specified in sub -section (2) shall, subject to the provisions of sub -section (4) and
19[sections 6A and 6B] be paid into the Fund. ];
(2) The Fund shall consist of—
(a) all fines realised from the employees;
(b) all unpaid accumulations ;
20[(bb) any contribution paid under section 6B.] 21[(bbb) any interest paid under
section 6c. ]
(c) any voluntary donations ;
(d) any fund transferred under sub-section (5) of section 7 22[***]
(e) any sum borrowed under section 8.
23[" (f) any loan , grant -in-aid or subsidy paid by the State Government or any
local authority or statutory corporation"
(g) all sums received in any other manner or from any other source." ]
(3) The sums specified in sub -section (2) shall be collected by such agencies a nd in such
manner and the accounts of the Fund shall be maintained and audited in such manner as
may be prescribed.
24[(4) Notwithstanding anything contained in any other law for the time being in force or
any contract or instrument, all unpaid accumulati ons shall be collected by such agencies
and in such manner as may be prescribed and be paid in the first instance to the Board
which shall keep a separate account therefore until claims thereto have been decided in
the manner provided in section 6A.].
4. 25[ 26[ The State Government shall, by notification in the Official Gazette, constitute a Board for
the State of Gujarat for the purpose of administering the Fund, and to perform other functions
assigned to the Board by or under this Act]; The Board shall consist of the following members,
namely :—
(a) such number as may be prescribed of representatives of employers and employees to
be nominated by the State Government ;
Provided that both employers and employees shall have equal representation on
the Board ;
(b) such number of independent members as may be prescribed, nomi nated by the State
Government ; and
Welfare fund
Board.
(c) such number of independent members as may be prescribed, nominated by the State
Government to represent women.
(2) The members of the Bo ard shall elect one of its independent members as the
Chairman of the Board.
27[(3) The members of the Board shall hold office during the pleasure of the State
Government.]
(4) The allowances, if any, payable to the members of the Board and the condition s of
appointment of the representatives of the employers and employees shall be such as may
be prescribed.
(5) 28[The Board shall be a body corporate by the name of the Gujarat Labour Welfare
Board] having perpetual succession and a common seal, with powe r to acquire property
both moveable and immoveable, and shall by the said name sue and be sued.
29[(6) Notwithstanding anything contained in this section, until the Board for the State of
Gujarat is duly constituted in accordance with t he provisions of sub section (1), the
existing Board functioning and operating immediately before the commencement of the
Bombay Labour Welfare Fund (Gujarat Extension and Amendment) Act, 1961, in any
area of the State, shall continue to function and opera te in that area and shall be the Board
for the purposes of this Act for that area ; and on the constitution of the Board for the
State of Gujarat under sub-section (1),—
(a) such existing Board shall stand dissolved, and the members thereof shall
vacate office ;
(b) all properties, funds and dues which are vested in realisable by the existing
Board shall vest in, and be realisable by Board so constituted.
(c) all rights and liabilities which are enforceable by or against the existing
Board, shall be enforceable by or against the Board so constituted, and where in
any proceedings, in any Court or Tribunal the existing Board is a party thereto,
the Board so constituted shall be deemed to be substituted as a party to those
proceedings ; and
(d) the Welfare Commissioner and the other officers and servants of the existing
Board shall continue to be the Welfare Commissioner and officers and servants
of the Board so constituted; but the terms and conditions of service of the
Welfare Commissioner and other offic ers and servants shall not, until duly
altered by a competent authority, be less favourable under the Board so
constituted than those admissible to them while in service of the existing Board.]
30[ 4A. Power of the Board in respect of the Karnataka area to be exercised by the Government of
Mysore for certain period.] Deleted by Guj. 47 of 1961, s.8.
5. (1) No person shall be chosen 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 a lunatic or becomes of unsound mind; or
Guj. XLVII of 1961
Disqualifications
and removal.
(d) is or has been convicted of any offence involving moral turpitude.
(2) The State 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.
6. (1) A member may resign his office by giving notice thereof in writing to the State
Government, and on such resignation being accepted, shall be deemed to have vacated
his office.
(2) A casual vacancy in the office of a member shall be filed up, as soon as conveniently
may be, by the authority concerned 31[***]
(3) No act or proceedings of the Board shall be questioned on the ground merely of the
existence of any Vacancy in, or any defect in constitution of the Board.
32[6A. (1) All unpaid accumulations shall be deemed to be abandoned property.
(2) Any unpaid accumulations paid to the Board in accordance with the pro visions of
section 3 shall, on such, payment, discharge an employer of the liability to make payment
to an employee in respect thereof, but to the extent only of the amount paid to the Board;
and the liability to make payment to the employee to the extent aforesaid sha ll, subject to
the succeeding provisions of this section, be deemed to be transferred to the Board.
(3) As soon as possible after any unpaid accumulation is paid to the Board under sub -
section (4) of section 3 the Board shall by a public notice call upon interested employees
to submit to the Board their claims for any payment due to them.
(4) Such public notice shall contain such particulars as may be prescribed and it shall
be—
(a) affixed on the notice board, or in its absence on a conspicuous part of the
premises, of each establishment in which the unpaid accumulations were earned.
(b) published in the Official Gazette, and
(c) published in any two newspapers in the language commonly understood in
the area in which such establishment is situated, and circulating therein or in
such other manner as may be prescribed, regard being had to the amount of
claim.
(5) After the notice is first affixed and published under sub -section (4) it shall be again
affixed and published from time to time for a period of 33[one year] from the date on
which it was first affixed and published, in the manner provided in that sub -section in the
months of June and December each 34[***].
(6) A certificate of the Board to the effect that the provisions of sub -sections (4) and (5)
were complied with shall be conclusive evidence thereof.
Resignation of
office by member
and filling up of
casual vacancies.
Unpaid accumula-
tions and claims
thereto.
(7) Any claim received, whether in answer to the notices or otherwise within a period of
35[two years] from the date of the first publication of the notice in respect of such clai m,
shall be transferred by the Board to the Authority appointed under section 15 of the
Payment of Wages Act, 1936, having jurisdiction in the area in which the factory or
establishment, is situated, and the Authority shall proceed to adjudicate upon, and decide,
such claim. In hearing such claim, the Authority shall have the powers conferred by, and
shall follow the procedure (in so far as it is appli cable) followed in giving effect to the
provisions of, that Act.
(8) If in deciding any claim under sub -section (7), the Authority allows the whole or part
of such claim, it shall declare that the unpaid accumulation in relation to which the claim
is made shall to the extent to which the claim is allowed, cease to be abandoned property
and shall order the Boa rd to pay to the claimant the amount of the claim is allowed by it;
and the Board shall make payment accordingly ;
Provided that, the Board shall not be liable to pay any sum in excess of that paid
under sub-section (4) of section 3 to the Board as unpaid accumulations, in respect of the
claim.
(9) An appeal shall lie in the City of Ahmedabad to the Court of Small Causes and
elsewhere to the District Court against a decision under sub -section (7) rejecting any
claim or part thereof, if made within a period of sixty days from the date of such decision.
(10) The Board shall comply with any order made in appeal.
(11) The decision of the Authority, subject to an appeal as aforesaid, and the decision in
appeal of the Court of Small Causes, or as the case may be, the District Court, shall be
final and conclusive as to the right to receive payment, the liability of the Board to pay
and also as to the amount, if any.
(12) If no claim is made within the time specified in sub -section (7) or a claim or part
thereof has been rejected under the foregoing provisions then the unpaid accumulations in
respect of such claim shall accrue to and vest in the State as bona vacantia and shall
thereafter without further assurance be deemed to be trans ferred to, and from part of , the
Fund. ].
36[(13) Nothing in the foregoing provisions of this section shall apply to unpaid
accumulations not already paid to the Board,
(a) in respect of which no separate accounts have been maintained so that the
unpaid claims of employees are not traceable, or
(b) which are proved to have been spent before the sixth day of December 1961,
and accordingly such unpaid accumulations shall not be liable to be collected and paid
under sub-section (4) of section 3.]
37["6B. (1) There shall be paid to the Board for the purposes of this Act. [Contri butions] a
contribution payable by the employer in respect of an employee in an establishment
(hereinafter referred to as "the employer's contribution" ), a contribution payable by such
employee ( hereinafte r referred to as " the employee's contribution" ) and a contribution
payable by the State Government, as hereinafter provided and every such contribution
shall form part of the Fund.
38[(2) The amount of employee's contribution shall be payable every six months in
respect of every employee whose name stands on the register of the establishment
IV of 1936.
concerned in the month of June, or as the case may be, in the month of December, at the
rate of three rupees for each such employee and the amount of employer's cont ribution
shall be payable at every six months at the rate of six rupees for each such employee:
Provided that the State Government may, by notification in the Official Gazette,
increase the said rate of employee's contribution to such amount not exceeding six rupees
if it considers necessary so to do to enable the Board to fulfill the objects of this Act:
Provided further that where the rate of employee's contribution is so increased
by the State Government, the rate to employer's contribution shall be tw ice the rate of
employee's contribution as so increased].
(3) Every employer shall pay to the Board both the employer's contribution and the
employee's contribution before the 15th day of July and 15th day of January, every year.
(4) Notwithstanding anything, contained in sub -sections (2) and (3), the em ployer's
contribution and the employee's contribution payable for the first time after the date of
the coming into force of the Bombay Labour Welfare Fund (Gujarat Amendment ) Act,
1973, ( hereinafter referred to as "the appointed date") shall be payable before such date,
and at the respective rates as aforesaid for every employee whose name stands on the
register of the establishment con cerned on such date as may be specified by the Stat e
Government by notification is the Official Gazette and such contributions payable next
thereafter shall be paid in accordance with the provisions of this Act, irrespective of
whether the period of six months as specified in sub-section (2) has passed or not.
(5) Notwithstanding anything contained in any other enactment but subject to the
provisions of this Act and the rules made thereunder the employer shall be entitled to
recover from any such employee that employee's contribution by deducti on from his
wages, and not otherwise; and such deduction shall be deemed to be a deduction
authorised by or under the payment of Wages Act, 1936:
Provided that no such deduction shall be made in excess of the amount of the
contribution payable by such emp loyee, nor shall any such deduction except the
deduction in respect of the employee's contribution payable for the first time after the
appointed date be made from any wages other than the wages for the months of June and
December :
Provided farther that, if through inadvertance or otherwise, no deduction has
been made from the wages of an employee for the month's aforesaid, such deduc tion may
be made from the Wages of such employee for any subsequent month or months with the
permission in writing of the Inspector appointed under this Act.
(6) Notwithstanding any contract to the contrary no employer shall deduct the employer's
contribution from any wages payable to an employee or otherwise recover it from the
employee.
(7) Any sum duly deducted by an emp loyer from the wages of an employee under this
section shall be deemed to have been entrusted to him by the employee for the purpose of
paying the contribution in respect of which it was deducted.
(8) An employer shall pay the employer's and the employee' s contribution to the Board
by cheque, money order or in cash, and he shall bear the expenses of remitting to the
Board such contribution.
(9) The Welfare Commissioner shall submit to the State Government as soon as possible
after the end of July and Janu ary every year in the prescribed form a statement showing
Guj. 29 of 1973.
IV of 1936.
the total amount of the employer's contribution in respect of his establishment for the
period to which the statement relates and on receipt of the statement from the Welfare
Commissioner, the State Government shall pay to the Board a contribution of an amount
equal to the employer's contribution in respect of that establishment :
Provided that the statement in relation to the employee's contribution payable for
the first time after the appointed da te referred to in sub -section (4) shall be submitted as
soon as possible after the specified dated in relation to that contribution."].
39["6C. (1) Where an employer does not pay to the Board any amount of unpaid accumulations or
fines realised from the employees or any amount of the employer's or, as the case may be,
employee's contributions within the time he is required by or under the provisions of this
Act to pay such a mount, the Welfare Commissioner May cause to be served a notice on
such employer to pay to the Board the amount within the period specified therein, which
shall not be less than thirty days from the date of service of such notice.
(2) Where the employer o n whom a notice is served under sub -section (1) fails without
sufficient cause to pay any such amount within the period specified in the notice, he shall
without prejudice to any penalty which may be imposed on him under this Act be liable
to pay to the Board simple interest on that amount for the period commencing on the date
of expiry of the period specified in the notice and ending on date of the payment of that
amount—
(a) in respect of the period falling within the first three months after such expiry ,
at the rate of twelve percent per annum, and
(b) in respect of the other period, at the rate of eighteen percent per annum.
(3) The amount of interest payable to the Board under sub -section (2) shall be collected
by the Welfare Commissioner in such manner as may be prescribed :
Provided that the Welfare Commissioner may, subject to such conditions as may
be prescribed, remit the whole or any part of the amount of interest in respect of any
period.".]
7. (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 State
Government from time to time to promote the welfare of labour and of their dependents.
(2) Without prejudice to the generality of sub -section (1) the moneys in the Fund may be
utilized by the Board to defray expenditure on the following :
(a) community and s ocial education centres including reading rooms and
libraries ;
(b) community necessities ;
(c) games and sports ;
(d) excursions, tours and holiday homes ;
(e) entertainment and other forms of recreations ;
(f) home industries and subsidiary occupati ons for women and unemployed
persons ;
Interest on unpaid
accumulations,
fines and
contributions after
notice of demand.
Vesting and
application of Fund.
(g) corporate activities of a social nature ;
(h) cost of administering the Act including the salaries and allowances of the
staff appointed for the purposes of the Act ; and
40 This sub section was inserted and shall be deemed always to have been inserted by Guj. 8 of 1963. s.2.
41 Section 6B was inserted by Guj. 29 of 19 3. s.4.
(i) such other objects as would in the opinion of the State Government
improve the standard of living and ameliorate the social conditio ns 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 accummulations and fines shall
be paid t o the Board and be expended by it under this Act
notwithstanding anything contained in the Payment of Wages Act,
1936, or any other law for the time being in force.
(3) The Board may, with the approval of the State Government, make a grant of the Fund to any
employer, any local authority or any other body in aid of any activity for the welfare of labour
approved by the State Government.
(4) If any question arises whether any particular expenditure is or is not debitable to the Fund, the
matter shall be re ferred to the State Government and the decision given, by the State Government
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 duly transferred to the Board.
8. The Board may from time to time with the previous sanction of the State Government and
subject to the provisions of this Act, and to such conditions as may be specified in this behalf
borrow any sum required for the purpose of this Act.
9. Where the Fund or any portion thereof cannot be applied at any early date for fulfilling the
objects of the Act, the Board shall invest the same in any of the securities specified in clauses (a)
to (d) and (f) of section 20 of the Indian Trusts Act, 1882.
10. The State Government may give the Board such directions as in its opinion are necessary or
expedient in connection with expenditure from the Fund or for carrying out the other purposes of
the Act. It shall be the duty of the Board to comply with such directions.
11. (1) (i) The Welfare Commissioner shall be appointed by the Board with the
previous approval of the State Government ;
(ii) the Welfare Commissioner shall be the principal executive officer of the
Board;
(iii) it shall be the duty of the Welfare Commissioner to ensure that the pro -
visions of this Act and the rules made thereunder are duly c arried out and for
this purpose he shall have the power to issue such orders not inconsistent with
the provisions of the Act and rules made threreunder as he deems fit including
any order implementing the decisions taken by the Board under the Act or rules
made thereunder.
IV of 1936.
Power of Board to
borrow.
Investment of Fund.
II of 1882.
Directions by state
Government to
Board.
Appointment and
Powers, of Welfare
Commissioner
42* * * * * * * *
12. (1) The State Government may appoint Inspectors to inspect records in connection with
the sums payable into the Fund, 43[ Inspector appointed, whether by a local auth ority or
the State Government under the Bombay Shops and Esta blishments Act, 1948 in relation
to any area, shall be deemed to be also Inspector for the purposes of this Act, in respect of
establishments, to which this Act applies and the local limits with in which such Inspector
shall exercise his functions under this Act shall be the area for which he is appointed
under the said Act.]
(2) Any Inspector may—
(a) with such assistance, if any, as he thinks fit, enter at any reasonable time any
premises for carrying out the purposes of this Act ;
(b) exercise such other powers as may be prescribed.
13. (1) 44[Any staff under the control of the Commissioner of Labour, Bombay which was —
(i) taken over by a Labour Welfare Board constituted under this Act and existing
on the date of such taking over, and
(ii) allotted to the Gujarat Labour Welfare Board established under the Bombay
Welfare Board (Reorganisation Order), 1960,
shall be subject to the provisions of this Act and the rules made thereunder ] :
Provided that—
(a) during the period of such employment all matters relating to pay, leave, retirement,
allowances, pensions, provident fund and other conditions of service of the said staff
shall be regulated by the Bombay Civil Services Rules or such other rules as may from
time to time be made by the State Government ;
(b) every such member shall have a right of appeal to the State Government against any
order of reduction, dismissal or removed from service, fine or any other punishment :
Provided further that person so taken over may elect within the prescribed
period that the desires to be governed by the rules made under this Act in respect of
conditions of service of the staff appointed by the Board under this Act and on his elect -
ing to do so the provisions of the first proviso shall cease to apply to him.
45[(2) On the coming into force of this Act in any area to which it is extended by the
Bombay Labour Welfare Fund ( Gujarat Extension and Amendment) Act, 1961, the
Board shall take over and employ such of the existing staff under the control of the
Commissioner of Labour, Ahmedabad as the State Government may direct, and every
such person so taken over and employed s hall be subject to like terms and conditions and
to the same provisions as in sub-section (1). ].
14. The Board shall have power to appoint the necessary clerical and executive staff to carry out
and supervise the activities financed from the Fund :
Provided that the expenses of the staff thus appointed and other administrative expenses
shall not exceed a prescribed percentage of the annual income of the Fund.
Appointment of
Inspectors
Bom. LXX. IX of
1948.
Absorption of the
existing staff under
Commissioner of
Labour.
Guj XLVII of 1961.
Appointment of
clerical and other
staff by Board.
15. The State Government shall have the power to remove any person whom it may deem
unsuitable, from the service of the Board and to make an appointment in respect of whom more
than one-third of the members of the Board have not agreed.
16. The State Government or any officer authorised by the State Government may call for the
records of the Board, inspect the same and may supervise the working of the Board.
17. Any sum payable 46[ to the Board or ] 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 reven ue.
48[17A. Any employer who fails to pay any amount of unpaid accumulations or fines realised from
employees or any amount of the employer's or, as the case may be employee's contributio ns,
within the period specified in a notice served on him under sub - section (1) of section 6 -C, 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.
17B. Any employer who deducts the whole or any part of the employer's contribution from the
wages payable to an employee or otherwise recovers it from the employee shall, on conviction, be
punishable with imprisonment which may ex tend to six months or with fine which may extend to
one thousand rupees or with both.
17C. Any person who wilfully obstructs an Inspector in the exercise of his powers or dis charge of
his duties under this Act or fails to produce for inspection on demand by an Inspector any
document maintained in pursuance of the provision 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 punishable—
(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 offences, with imprisonme nt 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 reason to the contrary to be
mentioned in the judgement of the Court, in any case where the offender is sentenced to a
fine only, the amount of fine shall not be less than fifty rupees.
17D. (1) Where an offence under this Act is committed by a company every person who at the
time when the offence was committed was in charge of* and was responsible to, the
company for the conduct of the business of the com pany 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 any such per son
liable to any punishment, if he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained 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 directo r, manager, secretary or other officer of, the company, such director,
manager, secretary or other officer shall be deemed to be guilty of that offence and shall
be liable to be proceeded against and punished accordingly.
Power of State
Government to
remove any person
on staff of Board.
Power of State
Government or
authorised officer to
call for record. etc.
Mode of recovery
of sums payable 47
to the Board or[into
Fund] etc.
Penalty for failure
to make payment of
unpaid accumula-
tions, etc.
Penalty for
unlawful deduction.
Penalty for obstructing
inspectors exercising
powers or discharging
duties, etc.
Offences by
companies.
Explanation.—for the purpose of this section—
(a) "Company" means any body corporate and includes a firm or other
association of individuals, and
(b) "director" in relation to a firm, means a partner in the firm.
17E. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973—
(a) no court inferior to that of a Metropolitan Magistrate or a judicial Magi strate
of the first class shall try any offence punishable under this Act; and
(b) no court shall take cognizance of any offence punishable 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.
(2) No prosecution for any offence under this Act shall be instituted, by any person
except an Inspector and no prosecution shall be instituted by the Inspector except with the
previous sanction of the Welfare Commissioner. ]
18. (1) If the State Government is satisfied that the Board has made default in performing any
duties imposed on it by or under this Act or has abused its power, the State Governments
may by notification in the Official Gazette supersede and reconstitute the Board 49[in the
manner specified in sub-section (7) of section 4 for constitution of the Board. ]
Provided that before issuing the notification under this sub -section, the State
Government will give a reasonable opportunity to the Board to show cause why it should
not be superseded and shall consider the explanations objections, if any, of the Boa rd.
(2) After the supersession of the Board and until it is reconstituted the powers, duties and
functions of the Board under this Act shall be exercised or performed by the Board or by
such officer or officers, as the State Government may appoint for this purpose.
19. (1) The State Government may by notification in the Official Gazette and subject to the
condition of previous publication, make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality o f the foregoing power, such
rules may be made for all or any of the following matters, namely:—
(a) the agency for and the manner of collection of sum specified in [sub -section
(3) of section 3; and the period within which the same shall be paid to the cr edit
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 ;
50[(bb) the manner in which the Welfare Commissioner shall collect under sub -
section (3) of section 6C the amount of interest payable under sub -section (2) of
that section to the Board, and the conditions subject to which the Welfare
Commissioner may remit the whole or any part of the amount of interest under
the proviso to sub-section (3) of that section;" ]
(c) the procedure for making grants from the Fund under section 7 ;
Provisions relating
to jurisdiction 2 of 1974.
Supervisoin of
Board.
Rules.
(d) the procedure for defraying the expenditure incurred in administering the
Fund;
(e) the number of representatives of employers and employees, independent
members and representatives of women o n the Board, and the allowance, if any,
payable to them, under section 4;
(f) the manner in which the Board shall conduct their business ;
(g) the duties and powers of the Inspectors and the conditions of service of the
Welfare Commissioner and Inspectors and other staff appointed under this Act;
51[(gh) the delegation of the powers, and functions of the Board to the Welfare
Commissioner and the conditions and limitations subject to which the powers
may be exercised or functions discharged : ]
(h) the p ercentage of the annual income of the Fund beyond which the Board
may not spend on the staff and on other administrative measures ;
(i) the registers and records to be maintained under the Act ;
(j) the publication of the report of the activities finance d from the Fund together
with a statement of receipts and expenditures of the Fund and statement of
accounts ;
(k) any other matter which under this Act is or may be prescribed.
52["(2A) In making any rules under this section, the State Government may di rect that a
breach thereof shall be punishable with fine not exceeding two thou sand rupees, and
when the offence is a continuing one, with a daily fine not excee ding one hundred rupees
during the continuance of the offence,".]
53[(3) All rules made unde r this section shall be laid for not less than thirty days before
the State Legislature as soon as may be after they are made, and shall be subject to such
modifications as the State Legislature may make during the session in which they are so
laid or the session immediately following.]
(4) Any modifications made by the State Legislature shall be notified in the Official
Gazette and shall, thereupon take effect.]
20. 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.
21. No suit, prosecution or other legal proceedings shall be against any person for anything which
is in good faith done or intended to be done under this Act.
22. The State Government may by notification in the Official Gazette exempt any class of
establishment from all or any of the provisions of this Act subject to such conditions as may be
specified in the notification.
23. In section 8 of the Payment of W ages Act, 1936, to sub -section (8) the following shall be
added, before the Explanation, namely : —
Members of Board,
Welfare
Commissioners,
Inspectors and all
officers and
servants of Board to
be public servants.
XLV of 1860
Protection to
persons acting in
good faith.
Exemption.
Amendment of
sections of Act IV
of 1936.
IV of 1936.
"but in the case of any factory or establishment to which the Bombay Labour Welfare
Fund Act, 1953, applies all such realisations stall be paid into the Fund constituted under
the said Act."
----------------------
1 For Statement of Objects and Reasons. see Bombay Government Gazette. 1953, Part V. pages
327-328.
This Order was published in Government of India. Ministry of Home Affairs. Notification No.
8/2/59-SR(R) 9, dated 4th December 1959. It came into force on 15th December, 1959.
2 This word was substituted for the word "Bombay" by Guj. 47 of 1961 s.2(a).
3 These words were substituted for the words "and for conducting such activities" by Guj. 47 of
1961, s. 2(b).
2 This word was substituted for the word "Bombay" by Guj. 47 of 1961 s.2(a).
3 These words were substituted for the words "and for conducting such activities" by Guj. 47 of
1961, s. 2(b).
3a This word was substituted for the word "Bombay" by Guj. 15 of 2011, s.3
4 These words were substituted for the words "the Bombay Labour Welfare Board" by the
Bombay Labour Welfare Board (Reconstitution) Order. 1960.
5 These words were substituted for the words "any of the Labour Welfare Boards" by Guj. 47 of
1961. s.4(a).
6 Clause (1a) which was deleted, further inserted, by Guj. 29 of 1973. s.2 (1)
7 These words were substituted for the words "munual or clerical" by Guj. 29 of 1973 s.2 (i).
8 These words were added by Guj. 29 of 1973. s. 2 (2ii).
9 These words were substituted for the word's seven hundred and fifty rupees' by Guj. 5 of 2005, s.
(1).
10 This portion was substituted for the portion beginning with the brackets, figures and words.
"(iii) any establishment and ending with the words." or any State Government." by Guj. 29 of
1973. S.2 (3)
11 These words were substituted for the words "the Bombay Labour Welfare Fund" by the Bombay
Labour Welfare Board (Reconstitution) Order. 1959.
12 These words ware substituted for the words "any of the Labour Welfare Fund" by Guj. 47 of
1961, s. 4(d).
13 Clause (8a) and (8b) were deleted, by Guj. 47 of 1961, s.4(e).
14 Clause (8A) was inserted by Guj. 29 of 1973, s. 2 (4).
15 These words were substituted, for the words " three years" by Guj. 5 of 2005, s.2(2).
16 These words and figures were inserted by Guj. 47 of 1961. s. 4(f).
17 Clause (11) was substituted by Guj. 29 of 1973, s.2 (5).
18 Sub-section (1) was substituted, by Guj. 29 of 1973, s. 6 (a).
19 These words, figures and letters were substituted for the word, figure and letter ' sec -
tion 6A" by Guj. 29 of 1973, s. 3(1).
20 Item (bb) was Inserted by Guj. 29 of 1973, s. 3(29)
21 Clause (bbb) was inserted by Guj 36 of 1980, s.2.
22 The word "and" was deleted by Guj. 29 of 1973, s.3 (2b).
23 Item (f) and (g) were added, by Guj. 29 of 1973, s. 3 (2c).
24 Sub section (4) was added, by Guj. 47 of 1961. s. 6(b).
25 This portion was substituted for the sentence beginning with The State Government" and ending
with "under this Act" by the Bombay Labour Welfare Board (Reconstitution) Order. Excerpt shown. Open the full act in Lexace.