The Kerala Labour Welfare Fund Act

/7 7/ 
THE KERALA LABOUR WELFARE FUND ACT, 1979'ji 
(AC1' II of 1977) 	
/ 
An Act to provide for the cons/Hut/an of a fund for promoting the welfare of labour and 
for certain other matters connected herewith in the State of Kerala. 
Preamble.- WHEREAS it is e*pedient to provide for the constitution of a fund for 
promoting the welfare of labour and fdr certain other matters connected therewith in the 
State of Kerala 
BE it enacted in the Twenty-sixth ear of the Republic of India as follows:- 
I. Short title, extent and a 	 I) This Act may be called the Kerala 
Labour Welfare Fund Act, 1975. 
it extends to the whole of the 	 of Kerala. 
it shall come into force on subh date as the Goveinment may by notification in the 
Gazette, appoint, and different dates imay be appointed for different areas of the State. 
2. Definitions-In this Act, unless the context otherwise requires,. 
(a) 'Board' means the Keralà Labour Wetfae Fund Board established under 
section 4 ; 
I 	 Ii  
K 
(b) 'Commissioner" means the dabour Welfare Fund Commissioner appointed 
under section 22; 	 I 	 I  
"Contribution"  means the sum of money payable to the Board in accordance with 
the provisions of section IS; 
"employee" means- 
(i) any person who is employed for hire or reward to do any work skilled or 
unskilled, manual, supervisory, c leridal or technical, in an establishment W["for an 
aggregate period of not less (han thirty days during the preceding twelve months'] 
whether the terms of employment bb express or implied, but does not include any 
.1 capacity: 
(B) QJ[******] or exercise either by the nature or the duties attached to the office 
or by reason of the powers vested in him, functions mairly of a managerial nature ; or 
(C) who is employed as an apprentice or on part-time basis. 
Explana/ion.-An apprentice means a person who according to the certified standing 
orders applicable to the establishinent, is an apprentice or who is declared to be an 
apprentice by the authority specifiel in this behalf by the Government ; and 
(ii) any other person employed in any establishmeht, whom the Government may, by 
notification in the Gazette, declare to be an employee for the purposes of this Act. 
person- 
(A) who is employed mainly in 
41- 
Exp/analion.-if any question aries Jhether a person is an employee for the purposes 
of this Act or not, the question shall be referred to the Government or an officer 
authorised by the Government in this behalf, whose decision thereon shall be final 
(c) 'employer" means a person, who employs either directly or through another 
person, either on behalf of himself or any other personJ one or more employee or 
employees in an establishment and includes- 
in a factoiy, any person named under clause (fl of sub-section (1) of section 7 of 
the Factories Act, 194$ (Central Act 63 of 1948), as the manager 
in any establishment, any person responsible to the owner for the supervision and 
control of the employees or for the payment of wages ; 
(f) "establishment" includes- 	
I 
a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (Central 
Act 63 of 1948) or any place which is deemed to be a factOry under sub-section (2) of 
section 85 of that Act ; 	 I 
a motor transport undertaking as defined in clause (g) of section 2 of the Motor 
Transport Workers Act, 1961 (Central Act:27 of 1961); 
[43[(iii) any land used for growing tea rubber, coffee, caidamom, oil palm or cocoa, 
in which ten or more persons are employed or were employed in any day of the preceding 
twelve month s; ''] ; I I 
4',  
any commercial establishmbiu v'ithin the meaning of clause (4) W[or  any shop 
within the meaning of clause (I 5)} oftsetion  2 of the Kerala shops and commercial 
Establishments Act, 1960 (34 of 1960). yhièh employs, or dn any working day during the 
preeeeding twelve months employed[J[two] or more persors: 
[2J[Provided that any such cObm rcial establishment shall continue to be an 
establishment for the purposes of this  Aàt notwithstanding Ôat there was a reduction in 
the number of persons to less than five at ally subsequent tim: 
Provided funher that where for aFeontimnLIous  period of not less than six months the 
number of persons employed theein has been less than five such commercial 
establishment shall cease 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 six months, 
but the employer shall, within one nbnth frbm the date of uch cessation, intimate by 
registered post the fact thereof to such authority as the Govemment may specif3' in this 
behalf;] 	 \ 	 I an establishment, including a ocidi' registered undei l  the Societies Registration 
Act, 1860 (Central Act 21 of 1860)or th&Travancorc-Cochin Literary, Scientific and 
Charitable Societies Registration Act, l955l1(1l  of 1955), which carries on any business 
or trade or any work in connection thcewith or ancillary thereo and which employs, or 
on any working day during the precc&linghwelve months ernloycd, more than twenty 
persons, but does not include an cstabRshmbiit: (not being a fadiory) of the Central or any 
State Government 
any other establishment which th: Government ma, by notification in the 
Gazette, declare to be an establishment fpr tlid purposes of this Act; 
- 
(g) 'Fund" means the Labour Welfare Fund constituted undei section 3 
(Ii) "Inspector" means an Inspector akpoii)tcd  under section 24 
(i) "prescribed" means prescribed 
	
made under this A IC  
M 
4 
4 
4 
4' 
(J) 'State means the State of Kerala 
(k) "unpaid accumulation" means all payments other than gratuity due to an employee 
but not paid to him within a period of three years from the date on which the payments 
became due, whether before or after the commencement of this Act, and the gratuity 
accrued to an employee after the eoniniencement of this Act but not paid within the 
period of three years from the date of sAeh accrual, but does not include the amount of 
contribution, if any, paid by an empidyer to a provident hind established under the 
employees Provident Funds Act, 1952 (Central Act 19 of 1952) or any other provident 
hind established by the Government 
"wages" means wages as defined' in clause (vi) of section 2 of the Payment of 
wages Act, 1936 (Central Act 4 of 1936).1 
3. Labour Welfare Fund.-(l) The Government shall cOnstitute a Fund called the 
Labour Welfare Fund, and, notwithstanding anything contained in any other law for the 
time being in force or in any contract on 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 acount thcrefor until claims thereto have been 
decided in the manner provided for in section 13. 
There shall also be credited to the Fund- 
unpaid accumulations paid to the Bdard under sub-section (2) of section 13; 
all fines including the amount realised under [J["Standing Order 17 of the Model 
Standing Orders issued under the Kerala Industrial Eniploynicnt (Standing Orders) Rules, 
1958"] from the employees by the employers, notwithstanding anything contained in any 
agreement between the employer and employee; 
deductions made under the proviso to sub-section (2) of section 9 of the Payment 
of Wages Act, 1936 (Central Act 4 of 1936) 
4. 
I,., 
'4 
I., 
contributions by employers and employees; 
any interest by way of penalty paid under section 14 
any voluntary donations ; 
any amount raised by the Board from other source to augment the resources of the 
Board; 	
I 
(Ii) any find transfelTed under subsection (6) of secLin 17 
any some borrowed under sectibn 18; 
any unclaimed amount credited to the Governmdnt in accordance with the rules 
made under the Payment of Wages Of 1936 (Central Act 4 of 1936) and the Minimum 
Wages Act, 1948 (Central Act I! of 1948) ; 	 I 
grants or advances made by the Central or State Government or any local 
authority 
[21[O) 
(3) The sums specified in sub-ection (2) shall be paid to, 
agencies, at such intervals and in such manner, and the accounts 
maintained and audited in such Aian;er as may be presdibed. 
r collected by, such 
of the Fund shall be 
4. .Esioh/islnneni of Iioara'.-(l) With effect from such date as the Government may, 
by notification in the Gazette, appoint in this behalf there shall be established a Board by 
the name ".Kerala Labour \Velfare F?nd Board". 
(2) The Board shall be a body corporate having perpetual suôcession and a common 
seal, and shall, by the said name. su and be sued. 
I 	 I 
I! 
5. Cons/i/u/ion of Boarc/.-( I) Th Board shall consist of the following members 
appointed by the Government, namely:1, 
V. 
Such number of representatives'of employers and employees may be prescribed: 
I 	 I Provided that both employers and employees  shall have equal representation on the 
Board; and 	 J 
such number of officials and non-officials as may be prescribed. 
(2) The Government shall appoint one of the members 'of the Board to be its Chairman. 
	
I 	 'U 
(3) The number of members of the Board includitg the Chairman shall not exceed 
twenty-five. 	 I 
I 	
U 
6. Appoin/men/ of Chainncin, and 01/icr members to be no/L/ied.-The appointment of 
the Chairman and the other menibei1s of the Board shall be notified in the Gazette. 
I 	 I 7. Term of office of menihers.-jthe term of office of the members of the Board other 
than the official members shall be three years from the date of their appointment and they 
shall be eligible for reappointment: 
I 	 I Provided that a member may continue as such member until the appointment of his 
successor. 	 I 	 I 
8. Disquallca!ions and removal. -( I) No person hall be chosen as, or continue to be, 
a member of the l3oard if he- 
is an officer or servant under th l3oard; or 
is an undischarged insolvent; of 
is of unsound mind; or 
has been convicted by a criminal court for an offence involving moral turpitude, 
unless such conviction has been set aside; or 
is in arrears of any sum due to the Board. 
(2) The Government may remove from office any member who- 
is or has become subject to any of Lhc disqualifidations mentioned in sub section 
(l);or 
is absent without leave of the Board for more than three consecutive meetings of 
the Board. 
Resignation of office by member and filling up casual vacancies.-(l) Any member 
other than an official member may rcign his office by giving notice thereof in writing, to 
the 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 may be filed up, as soon as may be, 
by the Government and a member sd appointed to fill such vacancy shall hold office for 
the unexpired portion of the term of dffice of the member whose place he fills. 
Pover to appoint conunittees. -( I) For the purpose of 
discmrge of its functions and in particular for carrying into 
specified in sub section (3) of sction 17, the Board may 
committees. 	 I  
advising the Board in the 
effect any of the matters 
constitute one or more 
a; 
(2) Each committees constituted under sub-section (I) shall consist of atleast one 
member of the Board. 
II. Acts of Board or committee not 1.0 he invalidated by informality, vacancy, etc.-No 
act done or proceeding taken under this Act by the Board or any committee shall be 
invalidated merely on the ground- 
(a) of any vacancy or defect in the constitution of the Board or the committee; or 
of any defect or irregularity in the appointment of a person acting as a member 
thereof ;or 
of any defect or irregularity insuch act or proceeding not affecting the merits of 
the case. 
12. Functions of//ic Board.- The functions of the Board shall be the administration of 
the Fund and such other functions as riay be assigned to it by or under this Act. 
.13. Unpaid accumulations a/Ic! clbims t/iereto.-(l) All unpaid accumulations shall be 
deemed to be abandoned property, 
(2) Any unpaid accumulation paid to the Board in accordance with the provisions of 
section 3 shall, on such payment, diséharge an employer of his liability to make payment 
to an employee in respect therco:f, 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 shall, subject to 
the succeeding provisions of this section, be deemed to be transferred to the Board 
4. 
(3) As soon as possible after the pdyment of any unpaid accumulation is made to the 
Board, the Board shall by notice- 
exhibited on the notice-board of the establishment in which the unpaid 
accumulation was earned; and 
published in the Gazette, and in such other mannr as may be prescribed, regard 
being had to the amount of the unpaid accumulations; in'vitc claims by employees, their 
heirs, legal representatives or assigns for any payment due to them. 
(4) The notice referred to in sub-section (3) shall be given in the manner aforesaid in 
June and December of every year, ifor  a period of thee years from the date of the 
payment of the unpaid accumulation to the Board. 
(5) If any question arises whether the notice referred to in sub section (3) was given 
as required by that sub-section and sub section (4), certificate of the Board that it was so 
given shall be conclusive. 
(6) if a claim is received, whether in response to the notices or otherwise, within a 
period of four years from the date first publication' of the notice in respect of such 
claini, the Board shall transfer such claim to the authority appointed under section IS of 
the payment of Wages Act, 1936 (cntral Act 4 of 1936), having jurisdiction over the 
area in which the establishment is situate, and that authority shall proceed to adjudicate 
upon and decide such claim. 
(7) In hearing any claim refen -ed to in sub-section (6), the authority referred to in that 
sub-section shall have the powers conferred by the Payment of Wages Act, 1936 (Central 
Act 4 of 1936) and follow the procedure (in so far as it is applicable), specified therein. 
(8) if the authority aforesaid issatisfied that any such claim is valid so that the right 
to receive payment is established, it shall decide that the unpaid accumulation in relation 
to which the claim is made shall edase to be deemed to be abandoned property, and shall 
order the Board to pay the whole of the dues claimed, or such part thereof as the authority 
decides are property due, to the employee; and the Board shall make payment 
accordingly: 
Provided that the .Board'shall not be Jiable to pay any suii in excess of that paid under 	 •1 
sub-section (I) of section 3 to the board as unpaid accumulations, in respect of the claim. 
if a claim for payment is refused, the employee or his heirs, legal representatives 
or assigns, as the case may be may, within sixty days from the date of receipt of the order 
of the authority, prefer an appeal to the District Court. 
* 
The decision of she authority, subject to appeal to the District Court, and the 
decision in appeal of 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. 
(II) If no claim is received within the period specified in sub-section (6), or a claim 
has been refused by the authority, or on appeal by the District Court, then the unpaid 
accumulations in respect of such claim shall accrue to, and vest in, the State as 
bona vacantia, and shall thereafter be cleenied to have been fransferred to, and form part 
of, the Fund. 
[jQj[" 14. Interest on the employer's and employees' contributions, unpaid 
accumulations Or/flies a/icr ijotice of demand.- (1) If an enpIoyer does not pay to the 
Fund any amount of the employers' and employees' contributions due under section 15 
before the date specified in that section or does not pay to the Board any amount of the 
unpaid accumulations or fines realised from the employees within the time specified by 
or under, this Act, the commissioner may serve or cause to be served on such employer a 
notice to pay the amount within the period specified therein, which shall not be less than 
thirty days from the date of service of such notice 
(2) If the employer fails, without reasonable cause, to pay the amount specified in a 
notice issued under sub-section (I) within the period specified therein, he shall be liable 
to pay, in addition to that amount,to the Fund or the Board, as the case may be, by way 
of penalty, simple interest at the rate of nine per cent per annum from the date on which 
the amount fell due: 
L 
Provided that the Goveniment may. ubject to such conditions as may be prescribed, 
remit the whole or any part of the penalty in respect of any period.'] 
IS. Contribution to the Fund by employees and employers.-( I) Every employee shall 
contribute fJjJ[four rupee] per half year to the Fund and evdry employer shall in respect 
of each such employee contribute U2][eight rupees] per half ear to the Fund. 
Every employer shall pay to the Fund both the employers contribution and the 
employee's contribution before the 15th d .ay of July and 15th day of January of every 
year. 
t Notwithstanding anything contained in any other law for the time being in force, 
the employer shall be entitled to recover fron the employees tle employee's contribution 
by deduction from his wages or in such otier manner as ma 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). 
Grant and advances by Government-The Government may, from time to time, 
make grants or advance loans to the Board for the purposes of this Act on such terms and 
conditions as the Government may, in each ease, determine. 	 1 
\ Vesting and application of Fund.-(l)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 in the Fund shall be Litilised by the Board to defray the cost of 
carrying out measures which may be specified by the Government from time to time to 
promote the welfare ofeniployecs and of their dependents. 
without prejudice to the generaliti of the provisions L0f such sections (1) and (2), 
moneys in the Fund may be utiliscd by the Board to defray éxpendiwre on the following 
activities, namely:- 
community and social education centres including reading rooms and libraries; 
games and sports 
(e) vocational training ; 
community necessities; 
entertainment and other forms of recreation; 
1. convalescent homes for tuhet eulosis patients 
holiday homes in health resorts ; 
1 
part-time employment for housewives olcthployees ; 
pre-schools 
0 
4. 
higher education 
nutritious food to children of.&mployees 
(I) employment opportunities to the disabled employees 
cost of administering this Act including the salaries and allowances of the staff 
appointed for the purposes of this Act ; and 	 F 
L \ such other objects as 	 i would n the opinion of the Government, improve the 
standard of living and ameliorate the social 1conditions of labour: 
Provided that the Fund shall not he utilised in financing any measure which the 
employcr is required under any law for the time being in force to carry out 
•1,  
Provided ftirther that unpaid accumulations and fines shall be expended by the Board 
tinder this Act notwithstanding anything contained in the Paynent of Wages Act, 1936 
(Central Act 4 of 1936) or any other law or areement for the time being in force. 
The Board may, with the approval of the Government, make grants from the 
Fund to any local authority or any other bodyin aid of any activity for the welfare of the 
employees. 
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. 
(6) The Board may accept the transfer of any Labour Welfare Fund of any 
establishment and may continue any activity financed from such Labour Welfare Fund if 
the said Fund is duly transferred to the Board. I 
18. Power to Board to borrow.- he Board may, froAl time to time, with the previous 
sanction of the Government and subject to the provisions of this Act and to such 
conditions as may be prescribed in this behalf, borrow any sum required for the purposes 
of this Act. I 
19. Deposit of Fund and pit cing of accounts and audit report before S/ate 
Legis/aiure.-( I) All moneys and kccipts forming part of the Fund shall, with the 
previous sanction oithe Governmeit, be deposited in the State Bank of India constituted 
under the State Bank of lndiaAcçI955 (Central Act 23 of 1955) or in any subsidiary 
bank within the meaning of clause (k) of section 2 of the State Bank of India (Subsidiary 
Banks) Act, 1959 (Central Act 38 df 1959) or in any corresponding new bank as defined 
in the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Central 
Act 5 of 1970), or in any District Fooperative Bank or in the Treasury Savings Bank, 
and such 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. 
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 l3oarél in respect thereof as they deem fit and the Board shall 
eonip ly w t Ii such instruct ons, 
The Government shall cause the accounts of the Board together with the audit 
report thereon forwarded to theM tinder sub-section (2) to be laid yearly before the 
Legislative Assembly of the State 
20. /ni'esunent of Fund-If the Fund or any portion thereof cannot be applied at an 
early dale for carrying out any bf the activities referred to in this Act, the Board shall 
flfl[deposit [he same in Government Treasuries or in nationalised banks or in scheduled 
banks or in district co-operative banks or] invest the same in any of the securities 
specified in clauses (a) to (d) and (I) of section 20 of the Indian Trusts Act, 1882 (Central 
Act2ofISS2). 
I!  
t. 
21 Power of Government to give directions to Board-The Government may give 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 such directions. 
22. 4ppoin!/l7e;7t and powers of Com,nissioner.-(1) The Government may by 
notification in the Gazette, appoint a Labour Welfare Fund Commissioner who shall be 
the Chief Executive Officer of the Bpard, 
4 
The conditions of appointment and service and the scale of pay of the 
Commissioner shall be such as may he prescribed. 
It shall be the duty of the Commissioner to ensure that the provisions of this Act 
and the rules made thereunder are duly ealTied out and for this purpose he shall have the 	 A: 
power to issue such orders not inconsistent with the provisions of this Act and the rule 
made thereunder, as lie deems fit, including any order implementing the decisions taken 
by the Board under this Act or the rules made thereunder. 
23. Finance O/jIcer.-( I) The Board shall have a Finance Officer appointed by the 
Government by notification in the Gazette. 
The Finance Officer shall exercise such powers and perform such duties as may 
be prescribed. 
The conditions of appointment and service and the scale of pay of the Finance 
Officer shall be such as may he prescribed. 
24. Jnspectors.-(1) The Government may, by notification in the Gazette appointment 
such persons as they think fit and possessing such qualifications as may be prescribed to 
be inspectors for the purpose of this Act, and may define the local limits within which, 
and the class of establishments in respect of which, they shall exercise their functions. 
(2) Subject to any rule made in this behalf, an inspector shall have power to do all or 
any of the following matters within thb local limits for which he is appointed, namely:- 
to make such examination land hold such inquiry as may be necessary for 
ascertaining whether the provisions of this Act have been and are being complied with 
require the production on ofjany prescribed register and any other document in 
possession of the employer in conneØtion with the sums payable to the Fund; 
to enter at all reasonable ti 	 any premises with such assistants as he may think 
fit; 
a. 
(d) to exercise such other 
25. Appointment of s/off of 
officers and other employees as n 
Act.  
as may be prescribed. 
I) The Board shall appoint such number of 
be necessary for carrying out its functions under this 
a. 
(2) The conditions of appointment and service and the scales of pay of the officers 
and servants referred to in sub-kection (I) shall be such as may be prescribed by 
regulations made by the Board. 
26. Power of Government and author/sect officers to call for records etc-The 
Government or any officer authorised by the Government in this behalf may call for the 
records of the Board, inspect the shme and supervise the working of the Board. Li. 
Mode of recovery of sums payable to Board-Any sum payable 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 1an arrear of public revenue due on land. 
Penalty for obstructing /nspcjctor or for failure to produce documents, etc-Any 
person who wilfttlly obstructs an Inspector in the exercise of his powers or discharge of 
his duties tinder this Act or fails to pioduce for inspection on demand by an inspector any 
register, record, or other documents 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 ptihished- 
For the first offence, with imprisonment for a Iterm which may extend to three 
months, or with fine which may ext+d  to five hundred rupees, or with both; and 
for a second or subsequen offence, with imprisonment for a term which may 
extend to six months. or with fin4whieh may extend to one thousand rupees, or with 
both: 
	
Provided that. in the absence 	 special and adequate reasons to the contrary to be 
mentioned in the judgment of the DLirt, in any case where the offender is sentenced to 
	
fine only the amount of fine shall 
	 he less than fifty rupees. 
fflj['2$A Penalties for other ofences.-( I) Whoever contravenes, or makes default in 
complying with any of the proviskns of this Act or of any rules or regulations made 
thereunder shall, if no penalty is provided in section 28 for such contravention or default, 
be punishable with imprisonment for a term which may extend to six months, or with fine 
which may extend to five hundred hipees. or with both. 
(2) A court while passing a judgment convicting a person under sub-section (1) for 
making default in the payment Of any amount due to the Fund or the Board shall also 
order that such amount he recovered from such person as if it were a fine imposed by 
such court and paid to the Fund orthe Board, as the ease may be] 
A. 
Cognizance of ojjences.-( I) No court shall take cognizance of any offence 
punishable under this Act jjjfloxccpt on a complaint made by an Inspector with the 
previous sanction in writing of the Commissioner] 
(2) No court inferior to that of ii Magistrate of the first class shall try any offence 
punishable under this Act. 
Offences by companies-(J) If the person committing an offence under this Act is 
a company, every person who, at the time the offence was committed, was in charge of, 
and was responsible to, the company for the conduct of the business of the company, as 
well as the company, shall be dccmcU to be guilty of the offence, and shall be liable to be 
proceeded against and punished accdrclingly 
Provided that nothing contained in this subsection shall render any such person liable 
to any punishment provided in thi Act, if he proves t  that the offence was committed 
without his knowledge. or that lie cerciscd all due diligence to prevent the commission 
of the offence. 
(2) Notwithstanding anything chntained 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 con,4ivancc of, or is attributable to any neglect on the part 
of, any director, manager. sceretab' or other officer of the company, such director, 
manager, seeretaiy or other officer sliall also be deemed to be guilty of that offence and 
shall be liable to be proceeded agairst and punished accordingly. 
Exp/anaiion.-For the purpose of this section,- 
(a) "companyt' means a body corporate and includes a firm or other association of 
individuals: and 
'U 
(b) "director", in relation to a firm, means a partner in the firm. 
31. Li,nitc tion of Pwseciition..-No court shall t take cognizance of an offence 
punishable by or under this Act 11111655  a complaint theeof is made within one year of 
[jj[thc date of which the offence eoiie to the notice of the inspector] 
ft71["provided that 110 court shall, take cognizance of an offence punishable by or 
under this Act after the expiry of tlrcc years from the date on which the offence is 
alleged 10 have been committed.] 
32. Power to supervise we/fire acIi'ities of establishment-in regard to any money set 
apart in any establishment speeiliôally 1  for the purpose of promoting the welfare of the 
employees in such establishment, the Board shall have power- 
4 
tO require the production of any document in possdssion of the employer of that 
establishment in connection with sL!ch money to satis' itselfas to whether such money is 
being applied for such purpose: 
to call for any information from such employer as it may deem relevant ; and 
to issue such directions to such employer as it may deem fit for the purpose of 
utilising the fund for promoting (lie welfak of the employees! 
33. Penalty for non-compliance with the direction of the Board-Any person who 
wilfully Fail to produce any document required by the l3oard or to furnish any information 
called for by the Board or wilfully fails to comply with any directions issued by the 
Board tinder section 32 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 
Il 	 . 
(b) For a second or subseqdent 1ffence, with 'mpnonment 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 bouru in any case 'heth the offender is sentenced to 
fine only, the amount of fine shall not be 1lcss than fifty rupeh. 
Annual ipor -The Board shall, as soon as may beafier 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 of the 
activities, if any, which are likely to be undertaken by the Board in the next year and the 
Government shall cause every such report to be laid before the Legislative Assembly of 
the State as soon as may be after it is received by the Government. 
Supeisession qfBoard-(l) If the Government are of opinion that the Board is 
unable to perform, or has persistently made default in the performance of the duties 
imposed on it by or under this Act or has exceeded or abused its powers, they may by 
notification in the Gazette supersede the l3oard for such period not exceeding six months, 
as may he specified in the notification: 	 I  
Provided that before issuing it notification under this sub-setion, the Government 
shall, by notice, require the Board to show cause within such period as may be specified 
in the notice why it should not he superseded and shall consider the explanations and 
objections, if any, of the Board. 
(2) Upon the publication of a notification !.under  sub-section 	 superseding the 
Board,- 
I .4 
(a) all the members of the l3oard shall, as from the date of supersession, vacate their 
offices as such; 
(b) all the powers and (lot leg which may, by or under the provision of this Act, be exercised or preformed by or 01) 
behalf of (he I3oard and the Chaim)an shall, during the 
period of supersession be exercised and performed by such authority or person as the Government may direct; 
I 	 - 
(e) all hinds 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 legafly subsisting and enforceable against the Board shall be 
enforceable against the authority or person refelTed to in clause (b) to the extent or the 
hinds and popert ies vested in it or him. 
(3) On Uie expiration of the period of supersession specified in the notification issued 
under sub-section M. the Government may- 
• (a) extend the period of supersessiOn for such ftirthcr period not exceeding six months 
as they may consider necessary: or 	 I 
(b) reconstitute the Board in the manner 1rovided in section 5. 
36. /k/e,wstion of po'crv.-( I) The Government may. by notification in the Gazette, 
authorise any authority or officer to exercise any of the power vested in them by or under 
this Act, except the power to make rules under section 40, and nay in like manner 
withdraw such authority. 
.3- 
(2) The Board may, by general or special order in writing, delegate in the 
Commissioner or other officer of the Board such of its powers and functions under this 
Act, except the power to make regulations under section 42, as it may deem necessary, - 
and may in like manner withdraw such authority. 
-I- 
4 ! 
The exercise of any power delegated under sub-section (I) 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 officer as may be empowered by the 
Government in this behalf or, as the base may he, by the l3oard or such officer as may be 
empowered by the Board in this behalf. 	 I 
The Government or the l3oard as the case may be, shall also have the power to 
control and revise the acts and proceedings of any officer empowered under sub-section 
(3). 
 
Aieinherc of Board, Conin,/ssjo,,er Inspectors etc.,, to be public servants-The 
members of the Board. the CommissioneR the Finance Officer, Inspectors and all officers 
and servants of the Board, and all persons entrusted with the execution of any function 
under this Act, shall he deemed to he public servants within the meaning of section 21 of 	 4 the Indian Penal Code (Central) Act 45 oil 860). 
Pmu'ciion of ace/on taken in good flu/h -(l) 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 Actor any rule or order made thereunder. 
(2) No suit or other legal proceeding shall lie against the Government or the Board for 
any damage caused or likely to be caused by anything which is in good faith done or 
intended to he done in pursuance of this Act or any rule or order ?de thereunder. 
Exen7p/ion.-Tlle Government may, b) notification in the Gazette. exempt any 
establishment or class of establishments froniall or any of the provisions of this Act 
subject to such eond i tions as may be speei fled in the notification. 
\ Pm4'er to nw/ce in/es. -( I) The Government may, by notification the Gazette, make 
rules for the purpose of carrying into effect the provisions of this Act. 
(2) in particular, and without preJudice to the generality of the foregoing power, such 
rules may provide for- 
the intervals at which or the period within which any of the sums referred to in 
section 3 shall be paid to the Boardor into the Fund, the manner of making such 
payment and the agency for, ad manner of, collection of any such sum; 
the manner in which the ac6OL1110 of the Fund shall be maintained and audited 
the allowances, if any, payable to the members of the Board 
the manner in which the employees contribution may be deducted from his wages 
the form of notice regarding.unpid accumulations 
the procedure for making giants from the Fund 
the procedtt for defraying the dpencliture incuntd in administering the Fund 
the manner in wh cli the Board shall conduct its business 
the delegation of the powers and functions of the Board to the Commissioner or 
other officer of the Board and the conditions and limitations subject to which such 
powers may be exercised or functions discharged 
G) the percentage of the annual income of he Fund beyond which the Board may not 
spend on the staff and on other administrative expenses 
Is 
4 
C" 
(k) the registers and records to be maintained under this Act 
(I) the publication of the report of the activities financed from the Fund together with a 
statement of receipts and expenditure ofhe Fund and statement of accounts 
(m) any other matter which has to be or may be prescribed. 
41. /?ules and not ficaIions to be Ia/cl h/bre the Legislative Assembly-Even,' rule made 
and every notification issued under this et shall be laid, as son as may be after it is made 
or issued, before the Legislative Assembly while it is in session for a total period of 
fourteen days which may he comprised j1c one session or in two successive sessions and 
if, before the expiiy of the session in\Vhich it is so laid, or the session immediately 
following, the Legislative Assembly makes any modification in the rule or notification or 
decides that the rule or notification should not be made or isucd, the rule or notification 
shall thereafter have effect only in such modified form or be ofno effect, as the case may 
be; so ho\\'ever that any such modification or annulment shall be without prejudice to the 
valid it)' of anything previously clone undeit  that rule or notification. 
42. Power to make regulations.-(1) The Board may, by notification in the Gazette, 
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 prejudieeto the generality of the foregoing power, such 
regulations may provide for- 
the procedure in regard to the transaction of business at 'the meetings of the Board 
including the quoru m 
the purposes for which and the nianner in which temporary association of persons 
may be made 	 I 	 I 
C. 
the duties, functions and the terJs and conditions of seMee of the members of the 
committees 	 L. 
the manner in which and the fdrm in which the aheounts of the Board shall be 
maintained 
any other matter which has t8 be, drmay  be, prescribd by regulations. 
No regulation or its caneellatin or modification shall have effect unless the same 
is approved by the Government. 	 [. 
The Government may. by notification in the Gazette, rescind any regulation made 
under this section and,thereupon, tlieregation  shall cease to have effect. 
43. Ainendineni of sec/ion 8. Cei'mI th 4 of 1936.-I ii qcction 8 of the Payment of 
Wages Act, 1936 (Central Act 4 of' I 936).in its application to the State of K.erala, in sub-
section (8), beFore the Eip/anaiion, the following proviso shal!be inserted, namely :- 
'db• 
"Provided that in the ease of any IC 
	
ishn'ient to which the Kerala Labour Welfare 
Fund Act. 1975, applies all such rela'ti 	 shall be paid into ithe  find constituted under 
that Act,". 
A 
4 
THE KERALA LABOUR WELFARE FUND (AMENDMENT) 
Act 1986111 
(A0 1  I OF 1987) 
An Ac; to amend the Kerala Labour We/fare Fund..4c!, 1975. 
Preamble.— WHEREAS it is expedient to amend the Kdrala Labour Welfare.Fund 
Act. 1975, for the purposes hereinafter ap)earing; 
BE it enacted in the Thirty-seveUth ear of the Republic' of india as follows: - 
I. S/nut i/tie and Commencement, 	 I) This Act may be called the Kerala Labour 
Welfare I und (Amendment) Act. 1986.   
(2) Section 5 shall be deemed to have conie  into force on the 1st day of January, 1983 
and the remaining provisions of this Act shall be deemed to have conic into force on the 
25th day of February, 1984. 	 1 
2 4,nendmeni of sect/on 2.— In sectiop 2 of the Kerala Labour  Welfare Fund Act, 
1975(11 of 1977) (hereinafter referred tO$5 (he principal Aci),- 
(I) in clause (d), in sub-clause (I).- 
in the opening paragraph, for the )ords "for a period of one hundred and fifty days 
in an year, the words "for an aggregate period of not less than thirty days during the 
preceding twelve months" shall be substitlited; 
in item (B), for the words "seven hundred and fifty rupees" the words "two 
thousand and five Ii tin d red rupees" shall b substituted 
(2) in clause 
for sub-clause (iii), the following sub-clause shall be stibstituted, namely;- 
"(in) any land used for growing tea, ru?bcr,  coffee, eardaniorn, oil palm or cocoa, in 
which ten or more persons are employed Or were employed in any day of the preceding 
twelve won tim;"  
in sub-clause (iv),— 	 I 
(I) after (he word, brackets and figure !pclause  (4)", the wdrds brackets and figures "or 
any shop with in the meaning of clause (IS)" shall be inserted; 
(ii) the provisos shall he omi (lcd, 
4,nencl,nen( of sect/op 3.—In suhsection (2) of section 3 of the prmcipal Act,- 
(I) in clause (b), for the words, figures and brackets 'Standing Order 20 of the Model 
Standing Orders issued wider the Kerald Industrial Employment (Standing Orders) Rules, 
1947", the words, figures and brackets "Standing Order 17 of the Model Standing Orders 
issued under the Keralu Industrial Empl6yment (Standing Orders) Rules, 1958' shall be 
substituted 
(ii) clause (I) shall be omitted. 
Substitution of new section for see c/on I 4.—For section 14 of the principal Act, the 
following section shall be substituted, namely:- 
1 4. Interest on the employers and enployees contributions unpaid accumula lions or 
fines after notice of demand. -( I) If an dmployer does not pay to the Fund any amount 
of the employers' and employees' contribitions due under section 15 before the date 
specified in that sect ion or does not pay to the Board any amount of the unpaid 
accumulations or fines, realised from the bmployecs within the time specified by or under 
this Act, the Commissioner may serve or bause to be served on such employer a notice to 
pay the amount within the period speci flel therein. vli ich shall not be less than thirty 
days from the date of service of such noti 
'U 
(2) If the employer Ihils. without rca 
notice issued under sub-section (I) with in 
to pay, in addition to that amount, to the F 
of penalty. simple interest at the rate ofni 
the amount fell clue: 
Provided that the Government may, su 
remit the whole or any part of the penalty i  
iable cause, to pay the amount specified in a 
o period specified therein, he shall be liable 
d or the Board, as the case may be, by way 
per cent per annu tm from the date on which 
eet to such conditions as may be prescribed, 
respect of any per!od." 
Ainenclinein of section 15.—In section IS of the prineial Act, in sub section (1), 
for the words 'fifty paise" and "one rupee"! the words "one rurice" and "two rupees" shall 
respectively he substituted. 	 I 
Insertion of nesi'seeuon 28A.—Aftcr section 28 of the principal Act, the 
following section shall be inserted. namel__ 
"28A. Penalties Jhr other oflènces.— 0) Whoever contraenes, or makes default in 
complying with any of the provisions ofhg Act or of any rules or regulations made there 
under shall. ifno penalty is provided in section 28 for such contravention  or default, be 
punishable with imprisonment for a term which may extend to s ix months, or with fine 
which may extend to five hundred rupees, o with both. 
(2) A court while passing ajudgenient convicting a person under sub section (1) for 
making default in the payment of any amount due to the Fund or the Board shall also 
I 	 1 
1 	 I 
it 
order that such amount be recovered 	 such person as if it were a flic imposed by 
such court and paid to the Fund or the 13aid, as the case may be. 
7. A inendineni of section 29.—I ii 	 (I) of section 29 of the prin cipal Act, 
for the words 'except on a complaint by r with the previous sanction in writing of, the 
Commissioner', the words "except on a )mplaint made by an Inspector with the 
previous sanction in vn ti na of the Corn issioner" shall be substituted. 
8 /I!?lendlnent (?/.S'&C!iOhl 31 --Ii 	 ion 31 of the pri id pa I Act,- 
(a) for the words "the date on whiel the offence is alleged to have been committed", 
the words "t

Excerpt shown. Open the full act in Lexace.

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